IDFC First Bank: Life Insurance Corporation of India Acquires Additional 2.48% Stake for Rs 1,500 Crore, Current Stake at 2.68%

LIC increased its stockholding in one of the upcoming leading banks, IDFC, by 2.68%, with a per-share value of 80.63. They got it via a private placement offer (PPO).LIC, India’s largest insurance company, finds its potential in the IDFC Bank, where previously LIC held 1.42 crore shares and has now increased to 20.02 crore. The market valuation is Rs. 57,059.68 crore for IDFC Bank, according to the exchange filing. IDFC Bank wants to use the money to focus on top asset quality growth, for which they have raised this money. IDFC raised a total of Rs. 3200 crore by selling equity shares to 56 insurance companies.

Following are the 6 companies that have bought IDFC First Bank’s shares:

1. Life Insurance Corporation of India (LIC) 
2. HDFC Life Insurance Company
3. Aditya Birla Sun Life Insurance Company
4. Bajaj Allianz Life Insurance Company
5. ICICI Lombard General Insurance Company
6. SBI General Insurance Company

This exclusive grant of 18.6 crore shares to LIC gives them a significant ownership stake in the company. With so many shares allocated to LIC, they have a potent influence on the decision-making processes and direction of the company. This partnership can be beneficial for both parties, as LIC gains potential for financial growth and the company gains a stable and influential shareholder. 

IDFC First Bank & LIC stock movement:

IDFC First Bank’s current stock currently trades flat at Rs.81.5, while The LIC stock has risen 2.23% after this investment.

History of the IDFC First Bank:

The IDFC First Bank, founded in October 2015, has been doing business in India for the past 8 years. The services they offer in India are Consumer banking. Credit cards, Home loans, Loans against property, Personal loans, Consumer Durable loans, Vehicle loans

Business loans, Micro Enterprise loans, Private banking, Wealth management, Investment banking, Corporate banking, and Wholesale banking.

They currently have Rs. 36,257 crore in revenue and an operating income of Rs. 6239 crore, with a net income of Rs. 2942 crore, total assets of Rs. 296,210 crore, and total equity of Rs. 25,145 crore. 

Conclusion: This increase in LIC investment in IDFC First Bank is a positive sign for the bank, as it shows that a reputable and trusted institution sees potential in its growth and stability. This vote of confidence from the LIC will not only boost the stock prices of IDFC First Bank but also instill confidence in other stakeholders, such as customers, employees, and other investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.