New Delhi, April 17
IDFC First Bank has announced plans to raise around Rs 7,500 crore from two investors through the issuance of compulsorily convertible preference shares.
The bank informed the stock exchanges in a filing on Thursday about the decision following a board meeting held on April 17, 2025.
According to the exchange filing, the board of directors has approved the fundraise from two separate investors--Currant Sea Investments B.V. and Platinum Invictus B 2025 RSC Limited. These funds will be raised by issuing preference shares that will be converted into equity shares at a later stage.
It said, "We wish to inform that the Board of Directors ("Board") of the Bank at its meeting held today i.e. April 17, 2025, has approved an aggregate fundraise of up to ~Rs 7500 crore from two separate investors i.e. (i) Currant Sea Investments B.V. and (ii) Platinum Invictus B 2025 RSC Limited."
To enable this, the bank board has decided to make some changes to the authorised share capital structure. As per the filing, the existing authorised share capital of the bank stood at Rs 14,000 crore. This was divided into 12.96 billion equity shares of Rs 10 each and 10.38 million preference shares of Rs 100 each.
Now, the bank has proposed a reclassification of this structure. Under the new plan, the authorised capital will remain at Rs 14,000 crore. However, it will be divided into 12.7 billion equity shares of Rs 10 each and 1.3 billion preference shares of Rs 10 each.
This change in capital structure will require the approval of the shareholders and other regulatory bodies.
The fundraising will take place through preferential allotment. The bank plans to issue and allot a total of 124.99 crore compulsorily convertible cumulative preference shares (CCPS), each with a face value of Rs 10. These shares will later be converted into an equal number of equity shares.
The capital infusion is expected to strengthen the bank's financial position, support its future growth plans, and enhance its lending capabilities.
— ANI
Reader Comments
Big move by IDFC First! This capital raise should really help them compete with larger private banks. Hope they use these funds to improve their digital banking experience too. 🚀
Interesting to see foreign investors showing confidence in Indian banks. Curious why they chose preference shares over direct equity though? Anyone know the tax implications?
As a shareholder, I'm cautiously optimistic. The dilution seems reasonable but I wish they'd shared more details about how exactly they plan to use these funds.
The bank's NPA ratios have been improving lately. This capital infusion at the right time should help them maintain that momentum. Good for long-term stability!
Not sure about the timing of this move. With interest rates expected to rise, wouldn't this increase their cost of capital? The article doesn't address this concern.
Been banking with IDFC First for 3 years now. Hope some of these funds go towards expanding their branch network - their service is great but locations are limited.
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