Shares of IDFC First Bank fell 4.1% to Rs 60.70 in Thursday's intraday trade on the BSE after the bank’s board approved raising up to Rs 7,500 crore through preferential shares to affiliates of Warburg Pincus and the Abu Dhabi Investment Authority (ADIA).
In an exchange filing, the bank said its board approved a preferential equity capital issue of Rs 4,876 crore to Currant Sea Investments B.V., an affiliate of Warburg Pincus LLC, and Rs 2,624 crore to Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of ADIA, managed by its Private Equities Department.
The bank also highlighted its transformation over the past six years from an infrastructure-focused development finance institution to a technology-led universal bank. During this period, deposits have grown sixfold, loans have doubled, and the CASA ratio has improved from 8.7% to 47.7%. Net profit has swung from a loss of Rs 1,944 crore in FY19 to a profit of Rs 2,957 crore in FY24.
Despite a dip in profitability during the first nine months of FY25 due to sector-wide challenges in microfinance, IDFC First Bank said it has navigated the headwinds effectively.
“It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans, and for investing in us even amid volatile global conditions. We believe that by building a strong, respected franchise—loved by customers and backed by solid unit economics—we can deliver sustainable, long-term returns to our stakeholders,” said V. Vaidyanathan, Managing Director & CEO, IDFC First Bank.
IDFC First Bank Share Price Target
According to Trendlyne data, the average target price for the stock is Rs 66, indicating an upside of around 4% from current levels. The consensus recommendation from 19 analysts is a 'Hold'.
The stock’s Relative Strength Index (RSI) stands at 65.2, which is within the neutral zone (below 30 is considered oversold; above 70, overbought). The MACD is at 0.0, above its center and signal lines, indicating a bullish trend.
IDFC First Bank shares are currently trading above their 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs), but remain below the 150-day and 200-day SMAs.
IDFC First Bank Share Price Performance
As of 10:22 am, shares of the bank were trading 1.6% lower at Rs 62.25 on the BSE. The stock is up 19% over the past one month but has declined 24% over the last 12 months. The bank's current market capitalisation stands at Rs 45,173 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
In an exchange filing, the bank said its board approved a preferential equity capital issue of Rs 4,876 crore to Currant Sea Investments B.V., an affiliate of Warburg Pincus LLC, and Rs 2,624 crore to Platinum Invictus B 2025 RSC Limited, a wholly owned subsidiary of ADIA, managed by its Private Equities Department.
The bank also highlighted its transformation over the past six years from an infrastructure-focused development finance institution to a technology-led universal bank. During this period, deposits have grown sixfold, loans have doubled, and the CASA ratio has improved from 8.7% to 47.7%. Net profit has swung from a loss of Rs 1,944 crore in FY19 to a profit of Rs 2,957 crore in FY24.
Despite a dip in profitability during the first nine months of FY25 due to sector-wide challenges in microfinance, IDFC First Bank said it has navigated the headwinds effectively.
“It is great to have Warburg Pincus back and to welcome a wholly owned subsidiary of ADIA as our shareholder. We thank them both for believing in us and our future growth plans, and for investing in us even amid volatile global conditions. We believe that by building a strong, respected franchise—loved by customers and backed by solid unit economics—we can deliver sustainable, long-term returns to our stakeholders,” said V. Vaidyanathan, Managing Director & CEO, IDFC First Bank.
IDFC First Bank Share Price Target
According to Trendlyne data, the average target price for the stock is Rs 66, indicating an upside of around 4% from current levels. The consensus recommendation from 19 analysts is a 'Hold'.
The stock’s Relative Strength Index (RSI) stands at 65.2, which is within the neutral zone (below 30 is considered oversold; above 70, overbought). The MACD is at 0.0, above its center and signal lines, indicating a bullish trend.
IDFC First Bank shares are currently trading above their 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs), but remain below the 150-day and 200-day SMAs.
IDFC First Bank Share Price Performance
As of 10:22 am, shares of the bank were trading 1.6% lower at Rs 62.25 on the BSE. The stock is up 19% over the past one month but has declined 24% over the last 12 months. The bank's current market capitalisation stands at Rs 45,173 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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