IDFC First Bank Limited has announced a significant change in its shareholding structure, with Currant Sea Investments B.V. acquiring a substantial stake in the bank through a preferential allotment.

Key Details of the Acquisition

• Acquirer: Currant Sea Investments B.V.
• Stake Acquired: 9.97% of total share capital (9.46% of diluted share capital)
• Number of Shares: 81,26,94,722 equity shares
• Mode of Acquisition: Preferential allotment via conversion of compulsorily convertible cumulative preference shares
• Date of Acquisition: October 8, 2025
• Basis of Acquisition: Investment agreement dated April 17, 2025

Impact on IDFC FIRST Bank's Share Capital

Acquirer Details

• Currant Sea Investments B.V. does not belong to the promoter group of IDFC FIRST Bank.
• Prior to this transaction, the acquirer held zero shareholding in the bank.

Implications for IDFC FIRST Bank

This significant stake acquisition by Currant Sea Investments B.V. marks a notable change in IDFC FIRST Bank's ownership structure. The conversion of compulsorily convertible cumulative preference shares into equity shares has led to a substantial increase in the bank's equity share capital and the total number of outstanding shares.

Recent Financial Performance

According to the latest available financial data:

• Total Business: The bank's total business stood at Rs. 5,10,031.00 crores as of June 30, 2025.
• Net Interest Income: For Q1 FY2026, the bank reported a Net Interest Income of Rs. 4,933.00 crores.
• Net Profit: The bank's net profit for Q1 FY2026 was Rs. 463.00 crores.
• Asset Quality: As of June 30, 2025, the Gross NPA ratio was 1.97%, while the Net NPA ratio stood at 0.55%.
• Capital Adequacy: The bank's Total CRAR was 14.86% as of June 30, 2025.

Upcoming Financial Results

IDFC FIRST Bank has scheduled a Board of Directors meeting on October 18, 2025, to consider the Unaudited Financial Results for the quarter and half-year ended September 30, 2025. The bank will host an earnings call with analysts and investors at 6:00 p.m. IST on the same day to discuss these results.

This strategic investment by Currant Sea Investments B.V. could potentially strengthen IDFC FIRST Bank's capital position and support its growth initiatives.

IDFC First Bank has successfully completed a significant capital raise, strengthening its financial position and welcoming a new major stakeholder. The bank's Board of Directors has approved the allotment of 81.27 crore equity shares to Currant Sea Investments B.V., an affiliate of global growth investor Warburg Pincus LLC, following the conversion of Compulsorily Convertible Preference Shares (CCPS).

Key Highlights of the Transaction

Transaction Background

The share allotment is the culmination of a process that began with the issuance of CCPS to Currant Sea Investments B.V. through a preferential allotment on a private placement basis. This strategic move was initiated following an Investment Agreement between IDFC First Bank and the investor.

Conversion Trigger

The conversion of CCPS into equity shares was triggered when the 45-day average of the daily volume-weighted average price of IDFC First Bank's shares on the National Stock Exchange of India Limited reached ₹60.00. This condition, as stipulated in the Investment Agreement, was met, prompting the conversion at the earliest opportunity.

Impact on Bank's Capital Structure

Following this allotment, IDFC First Bank's paid-up equity share capital has increased to ₹81,51,95,66,830, divided into 8,15,19,56,683 equity shares of ₹10.00 each. This infusion of capital is expected to bolster the bank's financial strength and support its growth initiatives.

Strategic Implications

The entry of Currant Sea Investments B.V., backed by Warburg Pincus LLC, as a significant shareholder with a 9.97% stake, brings strategic advantages to IDFC First Bank. This partnership with a global growth investor could potentially open doors to international expertise and resources, benefiting the bank's long-term growth strategy.

Dividend Payout

As part of the conversion process, the Board has approved a dividend payment on the CCPS at an 8% rate, totaling ₹72,67,49,472. This dividend is calculated proportionately for the period from the date of CCPS allotment to the date of conversion.

The successful completion of this transaction marks a significant milestone for IDFC First Bank, enhancing its capital base and introducing a strategic investor. This capital infusion and strategic partnership are likely to play a crucial role in shaping the bank's future in India's evolving financial services industry.