RBI clears Warburg Pincus arm Currant Sea to acquire 9.99% stake in IDFC First Bank

Earlier, Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) had announced a joint investment commitment of Rs 7,500 crore in IDFC First Bank via compulsorily convertible preference shares.

The Reserve Bank of India (RBI) has approved Currant Sea Investments B.V., an affiliate of global private equity major Warburg Pincus, to acquire up to 9.99 percent stake in IDFC First Bank. The bank disclosed the development in a stock exchange filing on Saturday.

"...we wish to inform that Currant Sea Investments B.V. has received the approval of the RBI with respect to its proposed investment of up to 9.99 percent of the paid-up share capital of the Bank," the filing stated.

This follows a similar clearance granted by the Competition Commission of India (CCI) on June 3 for the proposed investment. Currant Sea had approached the CCI in April seeking approval for the stake acquisition.

The regulatory nods come shortly after IDFC First Bank shareholders voted against the appointment of a non-retiring board member from Currant Sea Investments. Only 64.1 percent of shareholders supported the proposal, falling short of the 75 percent approval threshold required under corporate governance norms.

Earlier, Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) had announced a joint investment commitment of Rs 7,500 crore in IDFC First Bank via compulsorily convertible preference shares. As part of this capital infusion plan, IDFC First Bank is set to issue 81.26 crore preference shares to Currant Sea Investments and 43.71 crore shares to ADIA-backed Platinum Invictus, both at Rs 60 per share.