New Delhi, May 1 (PTI) Private equity principal Warburg Pincus has sought approval from fair trade regulator CCI to acquire a 10% stake in IDFC First Bank, a private sector lender.
U.S.-based Warburg Pincus will acquire shares in IDFC No. 1 Bank through its Arm Crand Sea Investments BV.
“Crants Sea Investments BV recommends up to 9.99% of the target (full dilution target (IDFC No. 1) (on a fully dilution basis) by subscribing to the top 81,26,26,94,722 convertible cumulative share shares,” said Crants Sea Investments BV.
Under Section 5(a)(i)(a) of the Competition Act 2002, the Competition Commission of India has notified the transaction.
IDFC First Bank is engaged in the business of providing banking services and other financial solutions.
The notice also said Platinum Invictus b 2025 RSC Ltd, a division of the Abu Dhabi Investment Authority (ADIA), plans to subscribe to 4.372 billion euros in preferred shares at IDFC First Bank.
If issued to Platinum Invictus b 2025 RSC, holding Gooseberry Sea investment will drop from 9.99% to 9.48%.
Adia is a global diversified investment institution that carefully represents Abu Dhabi government investment funds.
The notice said the parties believed that the transaction would not change India’s competitive landscape or raise concerns about the adverse impact on competition (AAEC) regardless of the relevant markets.
To assess CCI, the parties identified potential overlap between IDFC First Bank’s operations and the portfolio companies of Warburg Pincus LLC, which are related to Gooseberry Sea.
On the level side, there is overlap in the Indian loan services market, including retail loans such as home loans, education loans, microcredit and loans, as well as loans for property, as well as non-retail sectors such as commercial real estate financing.
Vertically, overlap is highlighted in the life insurance value chain, especially in the provision and distribution of life insurance products.
Last month, IDFC First Bank announced that it had approved a priority equity capital issue ₹Investing in BV in Gooseberry Sea Rs 48.76 crore and ₹26.24 million to Platinum Invictus b 2025 RSC fuels its next phase of growth.
