Mumbai: The board of IDFC First Bank has given its approval for the merger of IDFC Ltd and IDFC Financial Holding Company with the bank through a scheme of amalgamation.
As per the proposed merger, shareholders of IDFC Ltd will receive 155 shares of IDFC First Bank for every 100 shares held in IDFC Ltd.
The bank announced that the board has approved the execution of an implementation agreement between the entities, which outlines the process for carrying out the merger.
“The board of directors of the bank has accorded approval for the execution of an implementation of agreement between IDFC Ltd and IDFC First Bank, which sets out the manner of implementing the proposed transaction,” IDFC First Bank said in an exchange filing.
However, the merger is still subject to various approvals, including those from the Reserve Bank of India, Sebi, the Competition Commission of India, the National Company Law Tribunal, stock exchanges, and other relevant regulatory authorities, as well as the shareholders of both IDFC Ltd and IDFC First Bank.
IDFC Ltd currently holds a 40% stake in IDFC First Bank through its subsidiary, IDFC Financial Holding, and it is wholly owned by the public.
As of the end of March, IDFC First Bank had total assets of Rs 2.4 lakh crore and a turnover of Rs 27,194.51 crore.
In the financial year 2022-23, the bank reported a net profit of Rs 2,437.13 crore. On the other hand, IDFC Ltd had total assets of Rs 9,570.64 crore and a turnover of Rs 2,076 crore.
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