which recently increased its holding in the Adani Group, purchased a 2.58% investment in IDFC First Bank through bulk transactions on Friday. According to market records, the U.S.-based boutique asset management company purchased 171,602,498 shares of the private lender for Rs. 89 each, totaling Rs. 1,527 crore. On the BSE, IDFC First Bank shares closed the day on Friday just 0.11% higher at 93.44 per share.
According to market statistics, Cloverdell Investment, a Warburg Pincus affiliate, sold a 4.2% stake in the bank. Cloverdell held 7.12% of the outstanding shares of IDFC First Bank at the end of the June quarter.
According to the most recent shareholding data made available on the BSE, the bank is owned by promoter firms to the tune of 39.93%, with public shareholders owning the remaining 60.07% of the stock. The federal government owns 3.94% of the lender’s public stock, followed by mutual funds (2.78%) and international portfolio investors (4.51%).
The net consolidated profit reported by IDFC First Bank for the April-June quarter of FY24 was $765 crore, up 61% over the equivalent quarter in the prior fiscal. The bank’s net interest income increased 36% from Q1FY23’s Q2,751 crore to Q1FY24’s Q3,745 crore. Net interest margin increased from 5.77% in Q1FY23 to 6.3% in Q1FY24, growing year over year.
Gross non-performing assets (GNPA) decreased to 2.17% in Q1FY24 from 3.36% in Q1FY23 and 2.51% in Q4FY23 during the quarter under review. Net non-performing assets (NNPA) decreased from 1.30% in the same period last year and 0.86% in the preceding quarter to 0.70% in the June quarter of FY24.
Following the release of the Hindenburg report in April, GQG Partners gained notoriety for investing in Adani Group companies. More recently, the billionaire Gautam Adani-led conglomerate and JSW Energy have been added to its portfolio.
Through open market transactions, the GQG Partners Emerging Markets Equity Fund, which is sponsored by Rajiv Jain, bought 1.2 crore shares of the power generation and transmission company last month. The shares were bought for a total of 411 crore at an average price of 345 each.
Earlier in June, GQG Partners increased its ownership stake in two Adani group companies by investing 2.2% in the renewable energy company Adani Green Energy and 1.6% in the group’s flagship Adani Enterprises.
Jain, the co-founder and chairman of GQG Partners, paid 15,446 crores in March to purchase a minority position in four of the listed Adani Group firms. GQG Partners purchased shares of Adani Enterprises Limited (AEL), Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), and Adani Transmission (ATL), all of which are listed on the Australian Stock Exchange.
GQG’s investment was the conglomerate’s first significant financial infusion since January 24, 2023, when Hindenburg Research’s damning report on it was released. The majority of the listed firms experienced a significant market loss as a result of the report’s sell-off of group shares.