New Delhi, Aug. 21 -- Old habits die hard. On Tuesday, IDFC First Bank Ltd completed yet another round of fundraising worth Rs.2,623 crore, leading to more equity dilution and consequently value erosion for shareholders.
It allotted 437 million compulsorily convertible cumulative preference shares (CCPS) to Abu Dhabi Investment Authority's subsidiary. Earlier in August, it allotted 812 million CCPS to an affiliate of Warburg Pincus.
As CCPS costing Rs.60 apiece will be converted to equity shares, the number of equity shares from the two allotments will rise by 17% to 8.6 billion. The impact on book value (BV) will be minuscule as BV per share will rise to Rs.53.6 from Rs.52.8 as of June 2025.
IDFC's maiden equity dilution, worth Rs.2,0...
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