Private equity firm Warburg Pincus has pledged its entire 9.86 percent stake in IDFC First Bank to raise funds, reported Mint, citing sources.
The funds mobilized by Warburg through the loans will be used to return capital to limited partners of the funds managed by Warburg, the report added.
The source further told Mint that the firm has pledged the shares with Citigroup, Barclays and Standard Chartered also to raise funds.
Warburg, the report said, holds 471.73 million shares worth approximately Rs 1,940 crore in IDFC First Bank through an entity called Cloverdell Investment Ltd.
The development is significant, the report said, as India has been a major investment destination for Warburg. The report further added that the firm has also made several large investments across insurance, microfinance, logistics, education financing and real estate recently.
First Published: IST