New Delhi, May 1 (PTI) Private equity major Warburg Pincus has sought fair trade regulator CCI's approval to acquire 10 per cent stake in private sector lender IDFC First Bank.

US-based Warburg Pincus through its arm Currant Sea Investments BV will acquire the stake in IDFC First Bank.

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"The acquirer (Currant Sea Investments B V) proposes to acquire up to 9.99 per cent of the paid up share capital (on a fully diluted basis) of the target (IDFC First Bank) by way of subscription to 81,26,94,722 compulsorily convertible cumulative preference shares," a notice filed with the CCI said on April 28.

The deal has been notifiable to the Competition Commission of India under Section 5(a)(i)(A) of the Competition Act, 2002, it added.

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IDFC First Bank is engaged in the business of providing banking services as well as other financial solutions.

The notice also said that Platinum Invictus B 2025 RSC Ltd, an arm of Abu-Dhabi Investment Authority (ADIA) plans to subscribe to 43.72 crore preference shares in IDFC First Bank.

In the event of such issuance to Platinum Invictus B 2025 RSC, the holding of Currant Sea Investments will come down from 9.99 per cent to 9.48 per cent.

ADIA is a globally diversified investment institution that prudently invests funds on behalf of the Abu Dhabi government.

The parties have argued that the transaction will not alter the competitive landscape in India or raise concerns of appreciable adverse effect on competition (AAEC), regardless of how the relevant market is defined, the notice said.

For the assessment of CCI, the parties have identified potential overlaps between IDFC First Bank's operations and those of Warburg Pincus LLC's portfolio companies, which are affiliated with Currant Sea.

On the horizontal side, overlaps exist in India's lending services market, including retail loans such as home loans, education loans, microfinance, and loans against property, as well as non-retail segments like commercial real estate financing.

Vertically, overlaps have been highlighted in the life insurance value chain, specifically in the provision and distribution of life insurance products.

Last month, IDFC First Bank announced that it had approved a preferential issue of equity capital amounting to Rs 4,876 crore to Currant Sea Investments BV, and Rs 2,624 crore to Platinum Invictus B 2025 RSC to fuel its next phase of growth.

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