IDFC First Bank has announced a ₹7,500 crore capital raise through a preferential allotment of compulsorily convertible cumulative preference shares (CCPS) at ₹60 per share. The fundraise will be executed with two investors: Currant Sea Investments B.V., an affiliate company of Warburg Pincus and Platinum Invictus B 2025 RSC Limited. The decision was approved by the bank’s board on April 17, 2025.
The allotment will involve issuing up to 124.99 crore CCPS of ₹10 face value each, carrying a cumulative coupon of 8%. Currant Sea Investments will subscribe to approximately 81.27 crore shares worth ₹4,876 crore, while Platinum Invictus will take around 43.72 crore shares amounting to ₹2,623 crore. Upon conversion, each CCPS will convert into one equity share of the bank. The conversion will occur at the investor’s discretion or automatically upon meeting specific market conditions, within a maximum period of 18 months from the date of allotment.
The move also includes reclassification of the bank’s authorised share capital and an amendment to its Memorandum of Association. Additionally, the Articles of Association will be modified to allow Currant Sea Investments to nominate one non-retiring non-executive director to the board. The allotment and related changes are subject to shareholder and regulatory approvals, including from the Reserve Bank of India and the Competition Commission of India.
IDFC First Bank clarified that the investors are not related parties and there are no promoter holdings, with 100% of the bank held by public shareholders. The bank has issued a postal ballot notice to seek shareholder approval for the proposed changes.
