Shares of IDFC First Bank inched over 2 percent higher on September 11 after US boutique investment firm GQG Partners hiked its stake in the company through a Rs 479.50-crore block deal.
Around 5.1 crore shares or a 0.8 percent stake in the company changed hands in the block deal today at an average floor price of Rs 94.50, a near 1 percent discount from the stock's Friday closing price of Rs 95.35.
CNBC-TV18 reported that Rajiv Jain-led GQG Partners had bought the shares in today's block deal from the company's MD and CEO, V Vaidyanathan. The report also stated that the proceeds from the stake sale will be used to subscribe to fresh shares.
Vaidyanathan told CNBC-TV18 that he needed to pay Rs 229 crore to subscribe to the stock options and hence, the entire proceeds of the stake sale are being put back in the bank. "No part of share sale is being used for personal consumption," he said. After the stake sale, he is left with little over a 1 percent stake in the lender.
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At 9.45am, shares of IDFC First Bank were trading 1.3 percent higher at Rs 96.55 on the National Stock Exchange.
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On September 4, GQG Partners had bought a 2.6 percent stake in the Mumbai-based private lender in a deal worth Rs 1,527 crore. It was after the stake acquisition by GQG Partners that shares of IDFC First Bank hit a record high of Rs 100.70 last week.
Cloverdell Investment, the largest public shareholder in the bank had offloaded a 4.2 percent stake at an average price of Rs 89 last week, a part of which was likely bought by GQG Partners. As of the company's shareholding data on June 30, Cloverdell held a 7.12 percent stake in the bank.
Shares of the lender have surged over 64 percent in the year so far. It is thanks to this stellar run in its shares that IDFC First Bank also entered the elite club of the 10 most valuable listed lenders in India on September 4, replacing Union Bank of India and Canara Bank with a valuation of Rs 65,325 crore.
Also Read | IDFC First joins elite club of 10 most valuable listed banks in India
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