IDFC First Bank experienced a rollercoaster ride in its share prices recently, witnessing an initial 5% dip in early trading, only to recover and conclude the day relatively unchanged on September 1. This intriguing market movement coincides with noteworthy developments in the bank’s shareholding pattern.
Renowned investor Rajiv Jain, representing GQG Partners, has made significant inroads into IDFC First Bank by acquiring a 2.58% stake. The transaction involved the purchase of 17.1 crore shares at a rate of Rs 89 apiece, amounting to approximately Rs 1,527 crore.
This strategic move by GQG Partners reflects a vote of confidence in the lender’s future prospects. CNBC-TV18 had previously reported on the potential stake acquisition, which has now come to fruition.
Simultaneously, Warburg Pincus affiliate Cloverdell Investment has divested a 4.2% stake in IDFC First Bank. As of the June quarter, Cloverdell held approximately 7.12% of the bank’s shares.
In terms of the bank’s shareholding distribution, public shareholders command a majority with a 60.07% stake, while promoters retain the remaining portion. Among public shareholders, mutual funds hold approximately 2.78%, foreign portfolio investors possess 4.51%, and the government maintains a 3.94% stake in the bank.
IDFC First Bank made headlines last month by reporting a robust profit after tax (PAT) of Rs 770 crore in the first quarter of FY24. The bank’s impressive financial performance was underpinned by robust loan growth, healthy fee income, and effective credit cost management.
Notably, Rajiv Jain’s Fort Lauderdale-based asset management firm, GQG Partners, had previously made a noteworthy investment move by acquiring shares worth Rs 411 crore in JSW Energy on August 14. This investment involved the purchase of 1.19 crore equity shares, equivalent to a 0.72% stake in the power producer, at an average price of Rs 345 per share.
GQG Partners’ continued strategic investments in the Indian financial and energy sectors signify growing confidence in the country’s economic growth and investment potential.
The recent developments in IDFC First Bank’s shareholding pattern underscore the dynamic nature of the financial markets and the strategic moves by prominent investors as they navigate opportunities in India’s banking and energy sectors.
Sources By Agencies