IDFC First Bank block deal: 2.6% equity changes hands via multiple block deals; stock slips 2%

IDFC First Bank block deal: Shares of IDFC First Bank traded over 2 per cent lower on Thursday (March 28) after 2.6 per cent equity, or 18.37 crore shares, changed hands via multiple block deals. As per reports, Cloverdell Investment, which is an affiliate of Warburg Pincus, was likely to exit the private sector lender.

As per Zee Business research, Cloverdell was expected to sell its entire 2.25 per cent stake, or about 15.9 crore shares, through a block deal for a floor price of Rs 75 apiece. The block deal size, as per reports, is around Rs 1,191 crore.

Last seen, IDFC First Bank shares were down 2.83 per cent or Rs 2.2, at Rs 75.61 apiece on the BSE. The company's market capitalisation at around the same time stood at Rs 53,469.83 crore.

Recently, in a brokerage report, while touching on the topic of a reverse merger of IDFC and IDFC First Bank, BoB Capital said that the bank's strategic approach to becoming IDFC 2.0 will augur well.

Also Read: BoB Capital sees nearly 24% upside in IDFC First Bank stock; says bank's strategic approach to becoming IDFC 2.0 will augur well

Analysts at BoB Capital expect IDFC First Bank's strategic growth in the loan book to be driven by small- and medium-sized enterprises and retail portfolios, which are likely to aid net interest margins (NIM). 

IDFC First Bank has seen a turnaround post-COVID-19 pandemic, with its business dynamics and asset quality improving substantially, as partly reflected in the valuation rerating over the past year. 

How did IDFC First Bank fare in Q3? 

The company's net interest income (NII) soared by 30.5 per cent in the December quarter, while its profit after tax (PAT) was higher by 18.4 per for the same duration.

Its provisions saw a rise of 45.4 per cent year-on-year (YoY) and 23.9 per cent quarter-on-quarter (QoQ).

Even though the results were good, the guidance for the next five years is soft.

IDFC First Bank share price: Past performance

In a year, shares of IDFC First Bank have gained over 44 per cent as against Nifty50's rise of over 31 per cent. 

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