Synopsis:
IDFC First Bank is in focus after the RBI has approved Warburg Pincus arm to acquire a stake upto 9.99% in the bank.
The shares of this leading banking stock are in focus after the Reserve Bank of India has cleared Warburg Pincus’ arm to acquire up to 9.99 percent stake in this leading bank through its arm. In this article, we will discuss more about it in detail.
With a market capitalization of Rs 54,228 crores, the shares of IDFC First Bank Ltd are currently trading at Rs 73.9 per share, down by 6 percent from its 52-week high of Rs 78.50 per share. Over the past five years, the stock has delivered a robust return of 159 percent.
According to sources, the Reserve Bank of India has approved Currant Sea Investments Ltd, which is the arm of a global private equity player, Warburg Pincus, for acquiring upto 9.99 percent stake in IDFC First Bank. This follows after the PE firm had approached the Competition Commission of India (CCI) in June 2025 for the stake acquisition.
IDFC First Bank received the green light from regulators shortly after its shareholders turned down the appointment of a board member from Currant Sea Investments. The proposal only fetched 64.1 percent of the votes, falling short of the 75 percent required by corporate governance standards.
Financial Highlights
The company reported a revenue of Rs 36,502 crores in FY25, up by 20 percent from its FY24 revenue of Rs 30,325 crores. However, the company reported a net profit decline of 49 percent to Rs 1,490 crore in FY25 from Rs 2,942 crores in FY24.
The stock delivered an ROE and ROCE of 4.21 percent and 6.22 percent, respectively, and is currently trading at a P/E of 36.49x as compared to its industry average of 13.95x.
IDFC First Bank is a leading bank that offers a wide range of accounts, deposits, cards, and loans, including personal, home, vehicle, and business loans. Beyond that, the bank provides trade finance, supply chain financing, wealth management, and treasury services.
They also distribute insurance and investment products like mutual funds and gold bonds. On the digital front, you can enjoy mobile banking, internet banking, and an online trade portal for your convenience.
Written by Satyajeet Mukherjee
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