IDFC FIRST Bank has announced that its Board of Directors, in a meeting held on April 17, 2025, approved a significant capital raise of approximately ₹7,500 crore through preferential allotment of compulsorily convertible cumulative preference shares (CCPS). The fundraise involves investments from two global entities—Currant Sea Investments B.V., an affiliate company of Warburg Pincus and Platinum Invictus B 2025 RSC Limited.
In a move aligned with its growth strategy, the Bank will issue a total of 124,98,80,388 CCPS at ₹60 per share, which includes a face value of ₹10 and a premium of ₹50. Currant Sea Investments B.V. will subscribe to 81,26,94,722 CCPS amounting to approximately ₹4,876 crore, while Platinum Invictus B 2025 RSC Limited will invest in 43,71,85,666 CCPS for a consideration of around ₹2,623 crore.
The issued CCPS are fully paid-up, carry a cumulative dividend of 8%, and are mandatorily convertible into equity shares on a one-to-one basis. Conversion will take place either at the discretion of the investor or automatically, once the average volume-weighted share price over 45 trading days equals or exceeds the subscription price. However, the conversion will be completed no later than five business days before the expiry of 18 months from the allotment date.
The preferential issue is in compliance with the Companies Act, 2013, the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable regulatory provisions. Final execution is subject to shareholder approval and clearances from regulatory bodies including the Reserve Bank of India and the Competition Commission of India.
To facilitate this capital raise, IDFC FIRST Bank’s Board has also approved the reclassification of its authorised share capital. The Bank’s authorised capital will now comprise 12.7 billion equity shares of ₹10 each and 1.3 billion preference shares of ₹10 each, maintaining the aggregate value at ₹14,000 crore. This change requires an amendment to the capital clause in the Bank’s Memorandum of Association, subject to shareholder and regulatory approvals.
As part of the terms agreed with Currant Sea Investments B.V., the Bank has proposed an amendment to its Articles of Association. This amendment will allow the investor (or its assignees) to nominate one non-retiring non-executive director to the Board, further strengthening the governance framework and strategic alignment between the investor and the Bank.
In line with regulatory requirements, the Bank has approved the draft notice for a postal ballot to seek shareholder approval on key aspects of the transaction. These include the reclassification of authorised share capital, the issuance of CCPS on a preferential basis, and the proposed amendment to the Articles of Association.
