IDFC First Bank-IDFC Merger: The board of IDFC First Bank has approved the merger of IDFC Limited and IDFC Financial Holding Company. This is the second biggest deal in the financial sector after the merger of HDFC Bank and HDFC Limited. Under the proposed merger, shareholders of IDFC Limited will get 155 shares of IDFC First Bank for every 100 shares of IDFC.
Board of IDFC Bank approved
In an exchange filing on Monday, IDFC First Bank said the bank’s board of directors has approved the agreement between IDFC Limited and IDFC First Bank. The proposed transaction will be implemented under this. The merger will be completed by the end of this year.
Regulatory authority approval is awaited
However, the approval of the Reserve Bank of India is required for this merger. Apart from this, SEBI, Competition Commission of India, National Company Law Tribunal, Stock Exchange as well as BSE, NSE and other regulatory authorities and approvals will also be required.
How will the shareholding change?
IDFC Limited holds a 40 percent stake in IDFC First Bank through IDFC Financial Holdings. IDFC is a 100 percent i.e. public company. After this merger, IDFC Limited’s shareholding in IDFC First Bank will come to an end.
Total assets of IDFC First Bank and IDFC Limited
By the end of March 2023, IDFC First Bank’s total assets stood at Rs. 2.4 lakh crore and its turnover was Rs. 27,194.51 crores. The net profit of the bank in FY 2023 was Rs 2437.13 crore. On the other hand, talking about IDFC Limited, it has a total of Rs. 9,570.64 crore in assets and a turnover of Rs. 2,076 crores.
IDFC shares surged sharply on Monday
Dalal Street had anticipated the arrival of this news and based on that, IDFC shares hit a 52-week high in the stock market yesterday. Shares of IDFC rose 6.3 percent on Monday to Rs. 109.20 per share was trading. On the other hand, IDFC First Bank’s share rose by 3 percent to Rs. 81.95 per share was managed to close the trading.
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