IDFC First Bank Limited's (NSE:IDFCFIRSTB) largest shareholders are private companies with 41% ownership, institutions own 32%

Simply Wall St · 01/03 04:11

Key Insights

  • IDFC First Bank's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 4 shareholders own 53% of the company
  • 32% of IDFC First Bank is held by Institutions

Every investor in IDFC First Bank Limited (NSE:IDFCFIRSTB) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 41% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 32% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's take a closer look to see what the different types of shareholders can tell us about IDFC First Bank.

Check out our latest analysis for IDFC First Bank

ownership-breakdown
NSEI:IDFCFIRSTB Ownership Breakdown January 3rd 2026

What Does The Institutional Ownership Tell Us About IDFC First Bank?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

IDFC First Bank already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at IDFC First Bank's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:IDFCFIRSTB Earnings and Revenue Growth January 3rd 2026

Hedge funds don't have many shares in IDFC First Bank. Looking at our data, we can see that the largest shareholder is Idfc Financial Holding Company Limited with 31% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.5% and 7.8% of the stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of IDFC First Bank

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in IDFC First Bank Limited. It is a very large company, and board members collectively own ₹14b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over IDFC First Bank. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

We can see that Private Companies own 41%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

We can see that public companies hold 4.7% of the IDFC First Bank shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 3 warning signs we've spotted with IDFC First Bank .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.