Chennai4 hours ago
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Shareholders of IDFC First Bank have approved the merger of the bank with IDFC Limited. The bank has given this information in its stock exchange filing.
The meeting was called by the Chennai bench of the National Company Law Tribunal (NCLT) on Friday. In this meeting, shareholders have approved the merger of IDFC First Bank and IDFC Limited.
IDFC First Bank said that the merger plan has been approved by 99.95% equity shareholders. This decision has been taken through remote e-voting and e-voting. According to people familiar with the matter, NCLT may also announce its approval soon.
IDFC First Bank shares reached Rs 77.35
Whereas IDFC First Bank shares closed at Rs 77.35 on Saturday with a rise of 0.39%. The bank’s shares have given a return of 16% to its investors in the last one year. Its market cap is Rs 54 thousand crores.
RBI gave NOC for merger
On December 27, IDFC Limited said that the Reserve Bank of India (RBI) has given its No Objection Certificate (NOC) for the merger of IDFC Limited, IDFC FHCL and IDFC First Bank.
The board had given approval in July 2023
In July 2023, the boards of directors of IDFC FHCL, IDFC and IDFC First Bank had approved the merger proposal. IDFC Bank was licensed by RBI along with Bandhan Bank in 2014. In 2018, IDFC Bank Limited and Capital First Limited announced the completion of their merger to form IDFC First Bank.
IDFC holds 39.93% stake in IDFC First Bank
IDFC holds 39.93% stake in IDFC First Bank through its non-financial holding company. As per calculations on audited financials as of March 31, 2023, there will be a growth of 4.9% in the book value per share of the bank after the merger.
Earlier, the bank had said in a filing to the stock exchanges that the merger will merge the corporate structures of IDFC Financial Holding Company, IDFC Limited and IDFC First Bank into a single entity. This single unit will be simplified, which will help streamline regulatory compliance of these entities.
