Warburg Pincus raises stake in Capital First to 70%

Private equity major Warburg Pincus has increased its stake in Capital First Ltd (earlier Future Capital Holdings Ltd) to 70 per cent after acquiring an additional stake by converting compulsorily convertible preference shares (CCPS) into shares worth around Rs 49 crore ($9 million).

The PE firm, which acquired majority stake in the non-banking finance company of the Future Group last year, was allotted shares on conversion of CCPS at Rs 162 a piece, according to a market disclosure.

Warburg Pincus held 68.93 per cent stake in Capital First as of December 31, 2012. With the CCPS conversion, it will own around 70 per cent of the diluted capital base, as per VCCircle estimates.

Last June, Warburg Pincus struck a deal to acquire a large chunk of Future Group’s holding in Capital First and simultaneously agreed to put in around Rs 100 crore more in the company through a mix of equity and CCPS.

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 said last November.

Earlier this month, Capital First sold Mumbai-based Future Finance Ltd to APAC Consultants Pvt Ltd and its associate companies for $2.82 million.

Capital First scrip fell 1.28 per cent to close at Rs 142.90 a share on the BSE in a strong Mumbai market on Thursday.

(Edited by Sanghamitra Mandal)

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