Boards of IDFC firms approve merger ratio

livemint.com:

MUMBAI : The boards of IDFC Financial Holding Co. Ltd, IDFC Ltd, and IDFC First Bank on Monday approved a merger under which shareholders of IDFC will get 155 equity shares of the bank for every 100 shares held. The merger entails the amalgamation of IDFC Financial Holding into and with IDFC, and of IDFC into and with the bank.

The merger proposal was approved in principle by the boards in December 2021. According to a regulatory filing on Monday, the merger will simplify the corporate structure of IDFC Financial Holding, IDFC Ltd, and IDFC First Bank by consolidating them into a single entity. This, it said, will help streamline the regulatory compliances.

The merger will also help create an institution with diversified public and institutional shareholders, like other large private sector banks, with no promoter holding, it said. As a result of the proposed merger, the standalone book value per share of the bank would rise by 4.9%, as of 31 March. The merger is subject to approvals from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), the Competition Commission of India, the National Company Law Tribunal (NCLT), the stock exchanges and other statutory and regulatory authorities, and the respective shareholders.

“We look forward to building on our vision to create a world-class bank in India with the support of existing and new shareholders," said V. Vaidyanathan, managing director and chief executive of IDFC First Bank. Anil Singhvi, chairman of IDFC Ltd, said that as IDFC looks to conclude the last phase of its corporate restructuring, the merger with IDFC First Bank will help create a financial services powerhouse enabling seamless delivery of services to our customers.