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.

IDFC First Bank has announced a significant change in its domestic airport lounge access program for debit cardholders, moving from DreamFolks to Elite Assist, a subsidiary of Travel Food Services Limited (TFSL). This transition, effective September 15, comes in the wake of TFSL terminating its arrangement with DreamFolks.

Key Points of the Transition

• New Provider: Elite Assist, a subsidiary of Travel Food Services Limited (TFSL), is now the bank's partner for domestic airport lounge access.
• Effective Date: The change took effect on September 15.
• Reason: The shift occurred following TFSL's termination of its arrangement with DreamFolks.

Complimentary Visit Allowances

IDFC First Bank has maintained the same complimentary visit allowances across all card tiers:

Access Procedure

Cardholders can continue to access lounges by swiping their IDFC First Bank debit cards at participating domestic airport lounges. This process remains unchanged despite the switch in service providers.

DreamFolks' Status

While DreamFolks has confirmed the discontinuation of its domestic airport lounge access service for IDFC First Bank, it's important to note that:

• DreamFolks' global lounge business remains operational.
• Other domestic services provided by DreamFolks continue to function.

Corporate Governance Update

In a separate development, IDFC First Bank Limited has received acknowledgment from the Reserve Bank of India (RBI) regarding a change in its board composition. As per a disclosure:

• Currant Sea Investments B.V., an affiliate of Warburg Pincus, has been granted the right to appoint one non-executive director on the bank's Board of Directors.
• This appointment is subject to rotation, as per standard corporate governance practices.
• The RBI's acknowledgment follows an Amendment Agreement to the original Investment Agreement.

This corporate governance update reflects IDFC First Bank's ongoing efforts to strengthen its board and strategic partnerships.

As IDFC First Bank continues to evolve its services and corporate structure, these changes in both customer offerings and governance underscore the bank's commitment to enhancing value for its cardholders and stakeholders alike.