Moneycontrol
May 18, 2017 04:35 PM IST | Source: CNBC-TV18

Capital First says Warburg Pincus still holds a significant stake in the company

GIC Singapore has taken close to 9 percent of stake in the company, additionally, taking their own stakeholding to 14 percent, said V Vaidyanathan, Chairman, Capital First.

Capital First is in focus after news that Warburg Pincus sold two crore shares in the company.

Throwing more light on the above development, V Vaidyanathan, Chairman, Capital First told CNBC-TV18 that they have information that Warburg Pincus has sold about a 25 percent of their total shareholding of 61 percent. So, now they have a residual shareholding of 36 percent, which is still quite significant and they still continue to be shareholders in the company, he added.

With regard to the interest, Vaidyanathan said, “We are told that the amount of demand for shares in Warburg Pincus was substantially higher but they had to restrict themselves to 25 percent because they wanted to participate in the future growth story of the company.”

He said, GIC Singapore has taken close to 9 percent of stake in the company, additionally, taking their own stakeholding to 14 percent and the rest of the stock has been purchased by domestic and financial institutions, largely financial institutions.

The financial institutions' ownership, including domestic in the company, was currently 19 percent but after this trade, it should increase anywhere between 35-40 percent, said Vaidyanathan.

Now, there is a freeway for growth for many-many years because of substantial capital from newer shareholders particularly GIC who are a large fund of USSD 100 billion.

The final list of shareholders will come out maybe in a day or two but our standing right now is that is this is about 8-9 foreign shareholders largely and some domestic shareholders, he said.

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