IDFC First Bank shares in news as Rajiv Jain's GQG Partners buys 2.6% stake

Shares of IDFC First Bank are in focus on Monday as Rajiv Jain's GQG Partners emerged as one of the buyers, as an affiliate of US-based private equity firm Warburg Pincus, Cloverdell Investment offloaded a 4.2 per cent stake in the private lender for Rs 2,480 crore through an open market transaction.

Cloverdell Investment sold more than 27.86 crore shares on BSE via block deal, amounting to a 4.2 per cent stake in IDFC First Bank. The shares were disposed at Rs 89 apiece, taking the aggregate transaction value to Rs 2,480.34 crore.

Rajiv Jain-backed GQG Partners acquired a total of 17.6 crore shares or nearly 2.6 per cent stake in IDFC First Bank via two funds. The shares were purchased at the same price, taking the deal value to Rs 1,527 crore.

At the end of the June quarter, Warburg Pincus through its affiliates -- Cloverdell Investment and Dayside Investment -- have a shareholding of 8.5 per cent in the private lender IDFC First Bank, shareholding data pattern with the bourse showed. GQG Partners has investments in many Adani group companies, ITC and Max Healthcare, among others.

In a note on August 2, ICICI Securities said: "Qualitative and quantitative disclosures on asset quality suggest sharp improvement not only in the stock but also in the quality of customers at the time of onboarding and across vintage, which provides more confidence on the longevity of the current benign credit cost trajectory, in our view. Additional details on the corporate-salaried segment, penetration in government / PSU segment suggests rising traction in government segment, which should get further fillip as the bank now has the required years of profitability track-record."

The brokerage has 'ADD' rating on IDFC First Bank stock, with a target of Rs 105. 

IDFC First Bank was founded by the merger of erstwhile IDFC Bank and erstwhile Capital First on December 18, 2018. As per the bank website, it has a asset base of more than Rs 1,10,400 crore with 37 per cent in the retail segment. The bank's customer base stands at 7.3 million.

 

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