IDFC First Bank shares drop by 3.5% amid reports of Warburg’s potential exit in a block deal

IDFC First Bank’s shares dropped 3.5% on March 28 following news of a block deal worth ₹1,386 crore on the exchange. Approximately 18.3 crore shares, equivalent to a 2.6% stake in IDFC First Bank, were traded.

Today’s IDFC First Bank stock price

IDFC First Bank shares were priced at ₹75.60 on the NSE today. On March 27, the bank’s shares closed slightly higher at ₹77.81 each on the BSE.

What information do we have regarding Warburg’s departure from IDFC First Bank?

It was reported that Warburg Pincus affiliate Cloverdell Investment intended to sell its entire 2.25 percent stake, comprising 15.9 crore shares of IDFC First Bank, aiming to fetch at least ₹1,191.40 crore.

The report suggested that Morgan Stanley was probably the broker for the transaction.

Warburg’s previous sale of IDFC First Bank stake

However, this isn’t the initial instance of Warburg Pincus reducing its ownership in IDFC First Bank, as in December, it sold a 1.3% stake in the bank through an open market deal valued at ₹790 crore.

In September last year, a Warburg Pincus affiliate sold a 4.2% stake in IDFC First Bank for ₹2,480.34 crore. Previously, Cloverdell Investment held a 7.12% stake in the private lender at the end of the first quarter of FY24. IDFC First Bank reported an 18% increase in net profit to ₹716 crore in the third quarter ended December 31, 2023.

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