IDFC First Bank shares rise nearly 2% post major block deal; Warburg Pincus offloads 4.2% stake

Shares of IDFC First Bank jumped nearly 2 percent in early trade on September 4, post a major block deal. At 9:15 am the IDFC First Bank stock was trading 1.77 percent higher at Rs 95.30 on NSE.

Details of the block deal

Fort Lauderdale-based asset management firm GQG Partners has picked 2.6 percent equity stake in IDFC First Bank, the private sector lender, via open market transactions on September 1. Rajiv Jain-founded GQG Partners bought the major stake in the bank via two funds. GQG Partners Emerging Markets Equity Fund has bought 6.38 crore equity shares and Goldman Sachs Trust II-Goldman Sachs GQG Partners International Opportunities Fund purchased 10.77 crore shares, as per the bulk deals data available on the BSE. These shares, constituting 2.6 percent of total paid-up equity, were bought at an average price of Rs 89 per share, and were worth Rs 1,527.26 crore.

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However, foreign investor Cloverdell Investment was the seller in the deal, offloading 27.87 crore shares or 4.2 percent shareholding in the bank at same average price. The stake sale was worth Rs 2,480.34 crore. Cloverdell held 7.12 percent stake or 47.17 crore shares in IDFC First Bank as of June 2023.

Brokerage Views

Brokerage firm Motilal Oswal has given a ‘buy’ rating to the IDFC First Bank stock with a target price of Rs 100 in a recent report signifying a potential upside of nearly 19 percent from the current market price. The brokerage firm further stated that robust fee income has boosted earnings with the bank maintaining steady asset quality.

Stock Performance

IDFC First Bank stock has given a return of 63.08 percent over the past six months. The benchmark Nifty Bank index has given a return of 7.46 percent over the same duration.

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