Rajiv Jain-led US-based boutique investment manager GQG Partners Llc, on Friday, acquired a 2.6% stake in private lender IDFC First Bank Ltd for ₹1,527.26 crore, raising the former’s total fresh investment in Indian firms to over ₹41,000 crore in a span of just six months.
Through a bulk deal on the exchanges, Cloverdell Investment Ltd, an institutional shareholder in IDFC First, has sold 278.7 million shares or 4.2% stake in IDFC First Bank for ₹2,480.3 crore to several entities including GQG Partners.
Soon after a damning report against the Adani Group by US-based short-seller Hindenburg Research on 24 January, as stocks of Adani group firms corrected, GQG Partners purchased significant stakes in several Adani group firms in quick succession.
This included a 5% acquisition in Adani Enterprises for ₹9,600 crore, 8.1% of Adani Power for ₹8,811 crore, 6.3% of Adani Green for ₹7,038 crore, 5.03% in Adani Ports for ₹7,467 crore, and 5.5% in Adani Transmission for ₹4,525 crore.
Over the past 45 days, GQG Partners has increased its bets on other Indian firms as well.
On 17 July, GQG Partners bought 5.96% in Baba Ramdev-founded Patanjali Foods Ltd via an offer for sale for ₹2,639.4 crore. The US-based firm invested in Patanjali at a price of ₹1,223.35 a share.
Later, US-based fund manager acquired a 0.6% stake in JSW Energy Ltd for ₹351 crore.
GQG’s latest investment in IDFC First underscores the ongoing gains in the lender’s stock over the past few months.
The bank gained 28.7% in the past three months, significantly outperforming the broader market Nifty 50 index.
Most of the gains came after the bank announced stronger sequential financials.
On 29 July, IDFC First Bank reported a net consolidated profit of ₹765 crore in the June quarter, 61% up from ₹474 crore during the year-ago period. The net interest income of the bank grew 36% from ₹2,751 crore in Q1FY23 to ₹3,745 crore in Q1FY24.
During the April-June quarter, the core operating profit of IDFC First Bank was up by 45% to ₹1,427 crore from ₹987 crore during Q1FY23. The net interest margin grew year on year from 5.77% in Q1FY23 to 6.3% in Q1FY24 but declined marginally from 6.4% recorded during the previous quarter.
On Friday, IDFC First closed marginally higher at ₹93.40 apiece on the NSE.
Cloverdell Investment’s holding in IDFC First Bank has come down to 2.9% from 7.1% after Friday’s deal.
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Updated: 01 Sep 2023, 11:09 PM IST
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