After Adani companies, GQG Partners acquires stake in IDFC FIRST Bank from V Vaidyanathan

Rajiv Jain-backed investment firm GQG Partners has acquired stake in IDFC First Bank in a deal valued at Rs 478.70 crore. As part of the deal, GQG Partners acquired 5.07 crore equity shares of the bank from managing director and CEO V. Vaidyanathan in a block deal transaction.

"Capital First had originally granted CMD stock options to Vaidyanathan. Capital First merged with IDFC Bank in December 2018, and as part of the Amalgamation Scheme jointly agreed upon by IDFC Bank and Capital First, these Capital First CMD stock options were converted to IDFC FIRST Bank stock options. As these options are approaching their expiry, these are being exercised accordingly," the bank said in a regulatory filing on the BSE.

"Vaidyanathan is required to pay the exercise price to the Bank. Furthermore, Capital First was an entrepreneurial venture and the options have appreciated in value over the years due to progress made by Capital First and IDFC FIRST Bank. Hence, he is also required to pay Income Tax on the appreciation in the market value of the options over the option grant price, calculated as of the date of the exercise. To finance the same, he has executed the sale of the above-mentioned shares," the bank added.

Following this transaction Vaidyanathan's stake in the bank will increase from 0.58 per cent to 1.04 per cent.

GQG's India investments

Jain-backed GQG has been actively investing in Indian stock markets and has bought stakes in various Adani group companies. 

GQG has increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03 per cent last month by way of a bulk deal, stock exchange filings showed.

GQG now has a stake in five of the 10 Adani Group firms. 

On August 16, it bought a 7.73 per cent stake in Adani Power Ltd. Promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade and Investments sold an 8.09 per cent stake in Adani Power through block deals on August 16.

Of this, GQG bought 7.73 per cent, filings showed.

GQG had previously picked up a 5.4 per cent stake in Adani Enterprises, a 6.54 per cent stake in Adani Green Energy Ltd and a 2.5 per cent stake in Adani Transmission Ltd.

GQG has so far invested Rs 38,700 crore in Adani Group firms.