IDFC First Bank share price in focus as board approves ₹7,500 crore fundraise

IDFC First Bank share price hogged limelight in Thursday's trading session following the approval of a proposal to raise as much as ₹7,500 crore through the issuance of preferential shares to associated companies of Warburg Pincus and the Abu Dhabi Investment Authority.

The bank announced in an exchange filing that its Board of Directors has approved a preferential equity capital issue (CCPS) worth about ₹4,876 crore to Currant Sea Investments B.V., an affiliate of the global growth investor Warburg Pincus LLC, and approximately ₹2,624 crore to Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) managed by its Private Equities Department.

Additionally, IDFC First Bank announced that it has successfully evolved over the past six years from its original role as an infrastructure-centric Development Financial Institution to a contemporary, technology-focused, universal bank serving all of India.

Throughout this period, deposits increased sixfold, while loans and advances saw a two-fold rise, and the CASA ratio improved markedly from 8.7% to 47.7%. The PAT recovered from a loss of ₹1,944 crore in FY19 to a profit of ₹2,957 crore in FY24.

"It is great to have Warburg Pincus back and to welcome a wholly-owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans and for investing in us even under volatile global situations. We believe only by building a strong, respected franchise loved by customers and supported by strong unit economics, we will deliver sustainable long-term returns to our stakeholders,” said V Vaidyanathan, Managing Director & CEO, IDFC FIRST Bank.

IDFC First Bank share price today

IDFC First Bank share price today slumped over 4% following the fund raise news. IDFC First Bank share price touched an intraday low of ₹60.70 apiece, and an intraday high of ₹63.32 per share on the BSE.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, stated that IDFC First Bank share price corrected 47% from its all-time high in under 81 weeks and is now forming an 8-week base on the weekly chart. “The current bounce has the potential to push the stock towards the ₹63– ₹65 resistance zone. A sustained move above ₹65 will open the path towards the 50% Fibonacci retracement of the entire fall, placed at ₹76. Until then, this remains a technical pullback, and strength above ₹65 is essential for momentum,” Jain said.

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