Cheap Stock, Big Return: The stock market saw a significant surge on Monday after a three-day closure. Sensex and Nifty showed strong gains in early trading. Meanwhile, a bank stock has skyrocketed and received a BUY rating.
Several stocks are trading in the green as soon as the stock market opened on Monday, April 21st. These include IDFC First Bank shares. It has jumped 3.33% in early trade. As of 10 am, this stock is trading in the range of ₹65. The stock closed at ₹62 in the last trading session on Thursday, April 17th.
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IDFC First Bank Share: Reason for the Surge
On April 17, 2025, IDFC First Bank's board approved raising ₹7,500 crore in funds. Warburg Pincus and ADIA will jointly invest ₹7,500 crore, which will aid the bank's growth. Following the announcement of this investment through preferential equity shares, brokerage firm Jefferies is also bullish on it.
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IDFC First Bank: Analyst Opinion
Global brokerage firm Jefferies reported that Warburg Pincus will invest ₹4,876 crore from its affiliate company in this deal. Abu Dhabi Investment Authority (ADIA) will invest ₹2,624 crore through its subsidiary. Thus, a total of ₹7,500 crore will be invested, which is much higher than expected.
Information provided by the bank indicates that deposits have increased sixfold and the loan book has doubled in 6 years. The CASA ratio has reached 47.7% from 8.7%. After fundraising, CRAR could go up to 18.9% from 16.1%. The bank's retail loan growth and deposit growth are also continuously improving.
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IDFC First Bank Share Price Target
Jefferies has given a buy recommendation on this bank stock with a target price of ₹73. The stock made its high of ₹86 in April 2024. On April 7th of this year, the stock made a low of ₹52.5. However, recovery has been seen since then. Thus, analysts are bullish.
Disclaimer: Always consult your market expert before making any investment.
