Capital First announced that it is raising fresh equity capital of Rs.178 crores on a preferential basis at Rs.153.80/- per share subject to approval of Shareholders.
The company will allot 83.6 lac shares for a consideration of Rs.128 crores to Cloverdell Investment Ltd, an affiliate of Warburg Pincus, and 32.5 lac shares for Rs. 50 crores to HDFC Standard Life Insurance Company Limited.
Post this transaction, the total Tier 1 capital of the company on a consolidated basis will increase to Rs.1298 crores. The total capital of the company including Tier 1 and Tier 2 capital will increase to Rs.1791 crores.
Mr. V Vaidyanathan, Chairman and Managing Director said "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 31st, 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."
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