IDFC First Bank to raise Rs 7,500 crore from two investors through preferential allotment

The bank informed the stock exchanges in a filing on Thursday about the decision following a board meeting held on April 17, 2025.

According to the exchange filing, the board of directors has approved the fundraise from two separate investors--Currant Sea Investments B.V. and Platinum Invictus B 2025 RSC Limited. These funds will be raised by issuing preference shares that will be converted into equity shares at a later stage.

It said, "We wish to inform that the Board of Directors ("Board") of the Bank at its meeting held today i.e. April 17, 2025, has approved an aggregate fundraise of up to ~Rs 7500 crore from two separate investors i.e. (i) Currant Sea Investments B.V. and (ii) Platinum Invictus B 2025 RSC Limited."

To enable this, the bank board has decided to make some changes to the authorised share capital structure. As per the filing, the existing authorised share capital of the bank stood at Rs 14,000 crore. This was divided into 12.96 billion equity shares of Rs 10 each and 10.38 million preference shares of Rs 100 each.

Now, the bank has proposed a reclassification of this structure. Under the new plan, the authorised capital will remain at Rs 14,000 crore. However, it will be divided into 12.7 billion equity shares of Rs 10 each and 1.3 billion preference shares of Rs 10 each.

This change in capital structure will require the approval of the shareholders and other regulatory bodies.

The fundraising will take place through preferential allotment. The bank plans to issue and allot a total of 124.99 crore compulsorily convertible cumulative preference shares (CCPS), each with a face value of Rs 10. These shares will later be converted into an equal number of equity shares.

The capital infusion is expected to strengthen the bank's financial position, support its future growth plans, and enhance its lending capabilities. (ANI)