Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The Abu Dhabi Investment Authority (ADIA) is investing approximately $315 million (26.24 billion rupees) in Indian lender IDFC FIRST Bank through one of its subsidiaries, as part of a major capital infusion announced by the bank on Thursday.
According to a statement from the bank, the investment will be made by Platinum Invictus B 2025 RSC, a wholly owned subsidiary of ADIA. The deal involves convertible shares that will translate into a 5.10% stake in the bank upon full conversion into equity.
ADIA is a sovereign wealth fund based in Abu Dhabi, with total assets close to $1 trillion, according to the latest estimate by the Sovereign Wealth Fund Institute.
Another key investor in the same round is global private equity firm Warburg Pincus, whose affiliate Currant Sea Investments B.V. will invest $585 million (₹48.76 billion rupees). This is expected to give Warburg Pincus a 9.8% equity stake in the bank post-conversion.
In a statement, IDFC FIRST Bank highlighted its transformation over the past six years—from its legacy as an infrastructure-focused financial institution to a modern, technology-driven, pan-India universal bank.
The bank said it has made significant investments in distribution, digital capabilities, and talent, positioning itself as a leading private sector bank in India.
Hamad Shahwan AlDhaheri, Executive Director of the Private Equities Department at ADIA, said: “IDFC FIRST Bank has established itself as one of India’s foremost private sector banks, driven by a strong and experienced leadership team. The bank’s steady expansion of both digital and physical infrastructure positions it well to meet the growing demand for financial services across India. Our investment is aimed at supporting its continued growth trajectory.”
V Vaidyanathan, Managing Director & CEO of IDFC FIRST Bank, welcomed the backing from both global investors:
“We are pleased to welcome a wholly owned subsidiary of ADIA as a shareholder. We thank both ADIA and Warburg Pincus for believing in us and our growth vision, particularly during volatile global times.”
In a recent strategic review, ADIA reiterated its long-term investment approach, noting that its highly diversified global portfolio—spanning geographies, asset classes, and asset types—is designed to generate consistent returns across market cycles. In recent years, the sovereign wealth fund has significantly increased its exposure to private equity to capitalise on opportunities in both developed and emerging markets.
