IDFC twins gain more than 5% on Rs 2,000-crore capital infusion

Shares of IDFC First Bank and IDFC jumped more than 5 per cent following the parent’s decision to infuse Rs 2,000 crore in the bank.

Shares of IDFC rose 5.2 per cent to close at Rs 89, while IDFC First Bank rose 5.4 per cent to finish at Rs 59.6.

At a meeting held on Wednesday, IDFC’s board gave an in-principle approval to infuse Rs 2,000 crore “growth capital” into IDFC First Bank. The move will lead to an increase in its shareholding from 36.38 per cent at present to nearly 40 per cent. IDFC also declared a special interim dividend of Rs 11 per share. The capital infusion and dividend payout is on account of sale of IDFC’s mutual fund (MF) business.

“We have completed the last step of corporate simplification by selling our MF business to Bandhan consortium for Rs 4,500 crore,” said Anil Singhvi, Chairman, IDFC.