New Delhi, April 17 -- Private equity firm Warburg Pincus and Abu Dhabi Investment Authority, a sovereign wealth fund of the Gulf emirate, will invest a total of Rs 7,500 crore (about $877 million in IDFC First Bank, the Indian lender said Thursday.
IDFC First Bank said in a statement its board approved a preferential issue of equity capital amounting to about Rs 4,876 crore to an affiliate of Warburg Pincus and Rs 2,624 crore to a wholly owned unit of ADIA.
The proposed issues are subject to shareholder and regulatory approvals, the bank said.
"We believe the Indian banking sector presents an exciting opportunity and is poised for long-term growth," said Vishal Mahadevia, managing director, head of Asia PE and global co-head of financial services at Warburg Pincus.
The bank said the fundraise will help drive its next phase of growth and that its overall capital adequacy will increase from 16.1% to 18.9%, strengthening its balance sheet and "positioning it for strong and self-sustaining profitable growth".
Published by HT Digital Content Services with permission from VC Circle.