Warburg Pincus, HDFC Life Insurance to invest around $28M in Capital First

Private equity major Warburg Pincus and HDFC Standard Life Insurance Co Ltd are together investing around Rs 178 crore ($28 million) in the non-banking finance company Capital First Ltd, formerly known as Future Capital Holdings Ltd, according to a disclosure on BSE.

The two companies are subscribing up to 11.6 million shares on a preferential basis at a share price of Rs 152.80.

Warburg Pincus, through its associate company Cloverdell Investment Ltd, will be allotted 83,57,145 equity share worth Rs 128 crore, while HDFC Standard Life Insurance Co will be allotted 32,50,000 equity shares worth Rs 50 crore.

Warburg Pincus had first picked stake in the Mumbai-based NBFC by acquiring a large chunk of Future Group’s holding in Capital First and simultaneously putting in around Rs 100 crore more in the company through a mix of equity and CCPS in mid-2012.

It increased its stake in the NBFC to over 68 per cent after completing the mandatory open offer, which got a positive response from public shareholders. Warburg Pincus acquired 24.43 per cent stake in the financial services firm for Rs 270.7 crore in the open offer. It had been slowly adding more shares through open market purchases.

As on December 31, 2013, Warburg Pincus held a controlling 71.99 per cent equity stake in Capital First and will maintain the holding after the preferential allotment.

(Edited by Joby Puthuparampil Johnson)

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