IDFC First Bank Shares Fall After Board Sets Dividend Record Date

Shares of IDFC First Bank slipped during early trade after the board on Thursday announced the record date for dividend and approved the amended investment agreement with Currant Sea.

The board has set the record date for determining eligibility for the dividend recommended on April 26 for Friday, July 11.

The board in the same meeting also announced an amendment to the proposed fundraise of Rs 7,500 crore. This included a preferential allotment of Compulsorily Convertible Cumulative Preference Shares or CCPS to investors like Currant Sea Investments B.V. and Platinum Invictus B 2025 RSC Ltd.

The company has now approved an amendment to the investment agreement with Currant Sea, revising terms related to Currant Sea's right to nominate one non-executive director to the bank's board.

IDFC First Bank stock fell as much as 0.64% during early trade on Friday to Rs 77.16 apiece on the NSE. It was trading 0.21% lower at Rs 77.5 apiece, compared to a 0.11% advance in the benchmark Nifty 50 as of 9:26 a.m.

It has declined 4.44% in the last 12 months and 22.90% on a year-to-date basis. The relative strength index was at 55.51.

Fifteen out of 26 analysts tracking the company have a 'buy' rating on the stock, six recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 74.23, implying a downside of 5%.