ADIA unit backs India’s IDFC First: Platinum Invictus — a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) — is shelling out roughly USD 310 mn (INR 26.2 bn) for a 5.10% stake in Mumbai-listed IDFC First Bank, according to a joint press release (pdf). The capital injection — which will take place through the purchase of convertible shares — will help support the retail lender’s next phase of growth.

Not the only player in the game: New York-headquartered PE firm Warburg Pincus is chipping in north of USD 570 mn (INR 48.8 bn) through its affiliate Currant Sea Investments for a 9.8% stake in the lender.

The rationale: The fresh funds — amounting to USD 877 mn — will lift IDFC’s capital adequacy to 18.9% up from 16.1%, giving the bank more firepower to expand its retail footprint, invest in tech and distribution, and scale up.

By the numbers: IDFC posted a 28% y-o-y increase in net income to USD 356 mn last year, according to its latest financial statements (pdf). Its operating income came in at USD 2.7 bn in FY 2024 up 31% y-o-y.

About IDFC: Formed in 2018 through the merger of IDFC Bank and Capital First, the then-infrastructure-focused lender has grown into a retail bank with 971 branches in its home market. IDFC now offers a full range of services across retail, MSME, corporate banking.

Market reax: The bank’s shares closed down 0.5% at INR 62.98 yesterday.

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