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IDFC First Bank rises 2% on block deal with GOG partners

September 12, 2023

IDFC First Bank rises 2% on block deal with GOG partners
Shares of IDFC First Bank inched over 2 percent higher on September 11 after US boutique investment firm GQG Partners hiked its stake in the company through a ₹479.50-crore block deal.

Around 5.1 crore shares or a 0.8 percent stake in the company changed hands in the block deal today at an average floor price of ₹94.50, a near 1 percent discount from the stock’s Friday closing price of ₹95.35.
 
CNBC-TV18 reported that Rajiv Jain-led GQG Partners had bought the shares in today’s block deal from the company’s MD and CEO, V Vaidyanathan. The report also stated that the proceeds from the stake sale will be used to subscribe to fresh shares.
 
Vaidyanathan told CNBC-TV18 that he needed to pay ₹229 crore to subscribe to the stock options and hence, the entire proceeds of the stake sale are being put back in the bank. “No part of share sale is being used for personal consumption,” he said. After the stake sale, he is left with little over a 1 percent stake in the lender.
 
At 9.45am, shares of IDFC First Bank were trading 1.3 percent higher at ₹96.55 on the National Stock Exchange.
 
On September 4, GQG Partners had bought a 2.6 percent stake in the Mumbai-based private lender in a deal worth ₹1,527 crore. It was after the stake acquisition by GQG Partners that shares of IDFC First Bank hit a record high of ₹100.70 last week.
 
Cloverdell Investment, the largest public shareholder in the bank had offloaded a 4.2 percent stake at an average price of ₹89 last week, a part of which was likely bought by GQG Partners. As of the company’s shareholding data on June 30, Cloverdell held a 7.12 percent stake in the bank.
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