Thursday, June 13, 2024

Merger of IDFC Limited with 'IDFC First Bank'

Leader Online Desk : IDFC First Bank : After the merger of HDFC Bank and HDFC Limited last year, another major merger has been paved. Actually, IDFC is going to merge with IDFC First Bank and it has got the approval of the shareholders of the bank. The decision was taken in a meeting held at the National Company Law Tribunal branch in Chennai. After the approval of the shareholders, the way is now cleared for this major merger. The bank has given information in this regard to the stock market.

99.95% votes in favor of merger (IDFC First Bank)

“The National Company Law Tribunal (NCLT) had issued an invitation to consider the merger on May 17,” IDFC First Bank told the stock market. The board then informed the NCLT about the decisions we took in this meeting. 99.95 votes were cast in favor of this merger. Apart from the shareholders of IDFC Bank, non-convertible debenture (NCD) holders of IDFC Ltd. has agreed to the proposal to merge with the Bank of

155 shares instead of 100 shares

According to a Business Standard report, the Reserve Bank of India (RBI) had approved a proposal to merge IDFC Limited with IDFC First Bank in December 2023. After completion of this merger, as per the proposal, each IDFC Ltd shareholder will get 155 shares of IDFC Bank in exchange for his 100 shares. According to sources, the NCLT may soon give the green signal to the merger after shareholders' approval. (IDFC First Bank)

IDFC started in 1997

IDFC started in 1997 as an infra lender. Following this, IDFC received a banking license from the Reserve Bank of India in April 2014. When the on-tap license started in October 2015, IDFC Bank did. IDFC's debts and liabilities were then transferred to the bank.

Shares likely to be affected

The news of the merger of IDFC First Bank and IDFC Limited is likely to impact this banking stock. The stock market is off on Monday (20th) due to polling in Mumbai. So it may gain momentum when the stock market opens on Tuesday (21st). This week, the stock market opened on Saturday. In which IDFC First Bank shares closed higher. Shares of IDFC First Bank rose 0.39 percent to close at Rs 77.35, while shares of IDFC Limited rose 0.57 percent to close at Rs 114.40.

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