IDFC First Bank share price inches higher after CCI nod to Currant Sea Investments for stake acquisition

IDFC First Bank share price traded higher on Wednesday after the private lender announced that Currant Sea Investments B.V. received Competition Commission of India (CCI) approval for stake acquisition. IDFC First Bank shares gained as much as 0.64% to ₹67.41 apiece on the BSE.

“... we wish to inform that Currant Sea Investments B.V. has received the approval of the CCI with respect to its proposed investment of up to 9.99% of the paid-up share capital of the Bank,” IDFC First Bank said in a regulatory filing on June 4.

The proposed investment is subject to receipt of approval from the Reserve Bank of India (RBI), the private lender added.

The transaction involves Currant Sea Investments B.V. subscribing to 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) of IDFC First Bank. This will result in the Netherlands-based Currant Sea Investments B.V. holding a stake of up to 9.99% in IDFC First Bank on a fully diluted basis.

“The proposed combination entails the acquisition of up to 9.99% of the paid up share capital (on a fully diluted basis) of IDFC First Bank Limited (IDFC/Target) by way of subscription to 81,26,94,722 compulsorily convertible cumulative preference shares (CCPS) by Currant Sea Investments B.V. (Currant Sea/Acquirer),” the Competition Commission of India (CCI) said.

IDFC First Bank share price has gained 2% in one month and more than 18% in the past three months. On a YTD basis, IDFC First Bank shares have risen 5%, while the banking stock has fallen 7% in the past one year.

However, IDFC First Bank share price has delivered multibagger returns over the longer term, as the stock has rallied 90% in three years and 195% in five years.

At 2:30 PM, IDFC First Bank share price was trading 0.43% higher at ₹67.27 apiece on the BSE.

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