Warburg Pincus likely to sell 1.3% stake worth $100 million in IDFC First Bank via block deal

Warburg Pincus likely to sell 1.3% stake in IDFC First Bank via block deal

After offloading 97.5 lakh shares of the company at Rs 2,766.47 apiece from Computer Age Management Services Ltd (CAMS) on December 5,  US private equity giant Warburg Pincus is set to sell its stakes in Bharti Airtel and IDFC First Bank.

Warburg Pincus is planning to sell a 1.3% stake in IDFC First Bank through its affiliate, Cloverdell Investment, via a block deal for $100 million at Rs. 85.7 per share, sources told CNBC-TV18. Additionally, Warburg Pincus aims to raise $211 million in telecom major Bharti Airtel through a block deal, offering 17.5 million shares at a floor price of Rs 1,005 per share, as per CNBC-TV18's report citing Bloomberg.

Also Read | CAMS surges to 52-week high as 19% stake changes hands; Great Terrain Investment likely seller

Currently, Cloverdell Investment holds a 2.74 percent stake in IDFC First Bank, and after the 1.3 percent stake sale, it will be left with a 1.44 percent holding.

The private equity firm sold a 4.2% stake in IDFC First Bank for Rs 2,480 crore through block deals on September 4. At the same time, GQG Partners, backed by Rajiv Jain, acquired a 2.6 percent stake in IDFC First Bank for Rs 1,527 crore. Although shares of IDFC First Bank have gained 6.5 percent in the last five sessions since November 30, the scrip has corrected by more than 3 percent since Warburg Pincus's last sale on September 1.

These moves come after Warburg Pincus has been exiting several of its investments in India. The private equity firm has been investing in India since 1995 and has made significant investments in several Indian companies over the years.