CCI Issues Nod To Warburg Pincus To Acquire Nearly 10% Stake In IDFC First Bank
This comes days after IDFC First Bank shareholders rejected the proposal to induct a non-retiring board member from Currant Sea Investments—a Warburg Pincus affiliate.
The Competition Commission of India has issued its nod to Warburg Pincus to acquire nearly 10% stake in IDFC First Bank, according to a statement issued by the fair trade regulator on Tuesday.
"CCI approves the proposed acquisition of up to 9.99% of the paid up share capital of IDFC First Bank Limited by Currant Sea Investments B.V.," CCI posted on social media platform X.
Current Sea Investments is an arm of the US-based private equity major, which had sought CCI's nod for the proposed acquisition in April.
The CCI nod comes days after IDFC First Bank shareholders rejected the proposal to induct a non-retiring board member from Currant Sea Investments.
Only 64.1% of shareholders had voted in favour of the appointment, falling short of the 75% threshold required for approval.
Last month, NDTV Profit had exclusively reported that IDFC First Bank is in talks with domestic institutional investors to allay any concerns over the appointment of a non-retiring director from Warburg Pincus on their board.
Both affiliates of Warburg Pincus and the Abu Dhabi Investment Authority had agreed to jointly invest Rs 7,500 crore through in the bank by way of issuing compulsorily convertible preference shares.
The bank had said that it will allot 81.26 crore and 43.71 crore compulsorily convertible preferential shares at Rs 60 apiece each to both marquee investors, Currant Sea and Platinum Invictus, respectively.
