India’s IDFC First Bank to raise 75 billion rupees from Warburg Pincus, Adia

[MUMBAI] IDFC First Bank has approved a plan to raise 75 billion rupees (S$1.2 billion) from Warburg Pincus and Abu Dhabi Investment Authority (Adia).

The US-based private equity firm will invest US$570 million through its affiliate company and Adia will invest US$307 million through its subsidiary, the Indian bank said on Thursday (Apr 17). The Mumbai-based lender will issue 1.25 billion preference shares to the investors.

“We believe the Indian banking sector presents an exciting opportunity and is poised for long-term growth,” said Vishal Mahadevia, head of Asia Private Equity at Warburg Pincus, which is reinvesting in the bank.

Abu Dhabi’s wealth fund has come in as a new investor.

IDFC First Bank is the country’s ninth-largest private bank. It said the fundraising will improve its capital adequacy ratio to 18.9 per cent from 16.1 per cent in December 2024. BLOOMBERG