Warburg Pincus in its latest move increased its stake in Capital First Ltd. This was done through conversion of compulsorily convertible preference shares or CCPS into shares worth around Rs 49 crore.
The firm acquired the majority stake in the company of the Future Group were allotted shares on conversion worth about Rs162 per share. Previously, Warburg Pincus held a 68.93% share in the firm and with the conversion, the shareholdings would increase to 70% of the diluted capital base.
The whole transaction emanated when Warburg purchased a large portion of Future Group's holdings in Capital First while at the same time infusing about Rs100 crore more in equity and CCPS. Warburg first held a 24.43% share stake at Rs270.7 and then the gradual increase of shareholdings in the firm.
Upon close of the markets, Capital First shares fell by 1.28% to a value of Rs142.90 on shares at the BSE after a strong Mumbai market performance last Thursday.
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