IDFC First Bank becomes one of India's ten most valuable listed banks

5 Sep 2023 , 12:52 PM

With a market cap of Rs 66,386.78 crore, IDFC First Bank surpassed state-run lenders Union Bank of India and Canara Bank to join the exclusive club of the 10 most valuable listed banks in India.

Union Bank and Canara Bank each have market capitalizations of Rs 65,970.78 and Rs 61,499.01, respectively.

The shares of IDFC First Bank reached its 52-week high of Rs 100.70 on the NSE on Tuesday around 9:50 am and haven’t lost in seven sessions straight, including today. The rally has seen the stock rise by almost 11%.

According to market capitalization, the biggest banks are HDFC Bank, ICICI Bank, State Bank of India (SBI), Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Bank of Baroda (BoB), Punjab National Bank (PNB), and IDBI Bank.

Since September 22, 2022, when the stock of IDFC First Bank hit a 52-week low of Rs. 46.20 on the NSE, shares have increased by more than 117%. This is greater than the 13.5% annualised return provided by the Nifty PSU Bank index and the 11.64% annualised return provided by the Nifty 50.

The stock has moved with a 1-year beta of 1.3, according to Trendlyne, so the advance has not been without volatility.

Since the US-based GQG Partners, a well-known shareholder in Adani Group equities, acquired a stake in IDFC First Bank through bulk transactions, the company’s stock has been in the news.

Exchange data shows that GQG Partners paid approximately Rs 1,527 crore for 17.1 crore shares, or 2.58% of the lender. The price for the transaction was Rs 89 per unit.

A 4.2% share in the business was sold by Cloverdell Investment, a Warburg Pincus affiliate. Cloverdell owned around 7.12% of IDFC First Bank as of the June quarter.

Public shareholders possess a 60.07% stake in IDFC First Bank, with promoters holding the remaining 39.93%.

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