Capital First to raise Rs 178 crore via Preferential issue to cloverdell investment, HDFC Standard Life Insurance Company.

March 9, 2014,

Capital First has announced that it is raising fresh equity capital of Rs 178 crore on a preferential basis at Rs 153. 80 per share subject to approval of shareholders.

The company will allot 83.6 lakh shares for a consideration of Rs 128 crore to Cloverdell Investment, an affiliate of Warburg Pincus, and 32.5 lakh shares for Rs 50 crore to HDFC Standard Life Insurance Company.

Post this transaction, the total tier 1 capital of the company on a consolidated basis will increase to Rs 1,298 crore. The total capital of the company, including tier 1 and tier 2 capital, will increase to Rs 1,791 crore.
"We welcome HDFC Life as the new shareholders of the company. Post this transaction, the capital adequacy ratio which is already strong at 21.35% as of December 2013 will increase to 24%. The company grew assets under management by 29% during the twelve month period ended December 31, 2013, and this incremental capital will position Capital First to continue funding its future growth plans. The transaction also demonstrates the continuing commitment of Warburg Pincus to our company," V Vaidyanathan, chairman and managing director, Capital First, said.

The Times of India