IDFC gets board approval to merge with IDFC First Bank

30 Sep 2024 , 03:30 PM

On September 27, IDFC Limited stated that its Board of Directors had approved the merging of its subsidiaries. It stated that at its meeting, the Board adopted the composite scheme of amalgamation for merging IDFC Financial Holding Company Limited (IDFC FHCL) with IDFC Limited, and then IDFC Limited with IDFC FIRST Bank Limited.

IDFC further claimed that the National Company Law Tribunal (NCLT) Chennai Bench approved the amalgamation scheme on September 25, 2024.

IDFC said that its Board of Directors has approved the merger of IDFC FHCL with IDFC Limited, which will take effect on September 30, and the merger of IDFC Limited with IDFC FIRST Bank on October 1.

IDFC shareholders will receive 155 equity shares of ₹10 each in IDFC FIRST Bank for every 100 equity shares of ₹10 held by IDFC.

IDFC Bank was granted a licence by the RBI in 2014. In 2018, IDFC Bank and Capital First announced the completion of their merger to form IDFC First Bank.

IDFC First Bank is owned by IDFC through its non-financial holding company at a 39.93% share. The bank’s book value per share will increase by 4.9% following the merger, based on audited financials as of March 31, 2023.

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