Cloverdell Investment likely to offload stake in IDFC First Bank through block deal

IDFC First Bank block deal: Cloverdell Investment, US-based private equity firm Warburg Pincus' arm, is likely to sell its entire 2.25 percent stake via block deal on March 28.

The firm is looking to sell 15.9 crore shares worth Rs 1,191.40 crore. The floor price, as per a CNBC-TV18 report, is set at Rs 75 per share, which is about a 4 percent discount to market price.

IDFC First Bank shares ended 0.1 per cent higher at Rs 77.81 apiece on BSE on Wednesday. Warburg Pincus had last year divested a partial stake in IDFC Bank via a block deal. The US private equity firm, through its affiliate company Dayside Investment, sold 1.3% stake or 9.17 crore shares in the private lender.

The transaction between the companies was finalised at ₹86.1 per share, totalling to ₹790 crore.

IDFC First Bank had reported a net profit of Rs 715.68 crore for third quarter of the financial year (FY) 2023-24, which is 18 per cent more than Rs 605 crore recorded in Q3 FY23. The bank's gross non-performing asset (NPA), which is the overall asset quality, stood at 2.04 per cent, down from 2.96 per cent recorded in Q3 FY23. The bank's net NPA for the quarter stood at 0.68 per cent, improving from 1.03 per cent on a year-on-year basis.