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IDFC First Bank merger to complete this year

July 04, 2023

IDFC First Bank merger to complete this year
The board of IDFC First Bank approved its merger with IDFC on July 3 through an amalgamation scheme and the ratio of the deal has been fixed at 155:100. The private-sector lender proposes to complete the merger by the end of this year. This will be the second major merger deal in the financial sector in 2023 after HDFC Bank’s merger with Housing Development Finance Corporation. 

Under the proposed merger, shareholders of IDFC Ltd will get 155 shares of IDFC First Bank for every 100 shares held in the former. ‘’The share exchange ratio for the amalgamation of IDFC Limited with IDFC First Bank shall be 155 equity shares of face value of ₹10/- each fully paid-up of IDFC First Bank for every 100 equity shares of face value of ₹10/- each fully paid-up of IDFC Ltd,” said IDFC First Bank in a regulatory filing to the stock exchanges on July 3.
 
The companies have completed all stages of corporate simplifications. “The next step is the amalgamation with IDFC First Bank Limited,” the bank added in its exchange filing. “We propose to complete the amalgamation in this financial year, barring unforeseen circumstances.”
 
‘’As a result of the proposed merger, the standalone book value per share of the Bank would increase by 4.9 per cent, as calculated on audited financials as of March 31, 2023,” said the bank in its statement.
 
The amalgamation is subject to approvals from the Reserve Bank of India (RBI), Securities and Exchange Board of India, Competition Commission of India, National Company Law Tribunal, BSE, and the National Stock Exchange of India Limited and other statutory and regulatory authorities, and the respective shareholders, under applicable law.
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