GQG Partners, led by Rajeev Jain, has made a significant investment in IDFC First Bank, purchasing a 2.58% stake worth INR 1,527 crore. This move follows GQG’s previous investments in the Adani Group and JSW Energy. The transaction was executed at a price of INR 89 per share, as initially reported by CNBC-TV18. Concurrently, Warburg Pincus’s Cloverdale Investment divested a 4.2% stake in IDFC First Bank, reducing its holdings from 7.12% in the June quarter.
GQG Partners’ Strategic Investment in IDFC First Bank
As of the June quarter, public shareholders held a 60.07% stake in IDFC First Bank, with the remaining shares owned by promoters. Among the public shareholders, mutual funds accounted for 2.78% while foreign institutional investors held 4.51%. The government also maintained a 3.94% stake in the bank. Although there was a decline in IDFC First Bank’s share price on August 1, the stock rebounded during the day and closed at INR 93.20 with a marginal 0.16% decline.
GQG and Warburg Pincus in Action
IDFC First Bank reported a profitable June quarter, recording earnings of INR 770 crore, attributed to robust loan growth and favorable fee income. This investment in IDFC First Bank follows GQG Partners’ acquisition of JSW Energy shares valued at approximately INR 411 crore through an open market transaction on August 14. GQG Partners Emerging Markets Equity Fund purchased 1.19 crore shares of JSW Energy, equivalent to a 0.72% stake, at a share price of INR 345, totaling INR 410.94 crore.
