HDFC twins to IDFC First Bank IDFC merger: What India Inc may expect to achieve from these amalgamations

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HDFC Bank HDFC merger, IDFC First Bank IDFC merger has been announced, signaling some more such mergers to follow. The move is expected to help corporates to become a bigger business entity in India and global merchandise.

It would also enable corporates to improve their margins and deliver better quarterly numbers in coming quarters, which is expecting to bring more foreign investment in the Indian stock market (in case of merger of listed entities). According to experts, these mergers would make such companies to raise fund with ease as they would emerge as 'too big to fail' as a corporate.

Speaking on the benefit coming to these corporates after the merger, Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal said, "HDFC twins merger and IDFC First Bank IDFC mergers are going to enable these entities to improve their margins as Indian as well as global corporates are facing huge challenge on margin improvement front. After the merger, corporates will be able to contain their expenditure without putting any added pressure on their clientele.

Apart from that they would get an additional cash reserve after the merger, which is also a positive sign for these companies after merger." On how these margin improvements would benefit India Inc, Chandan Taparia said, "Improvement in margins would lead to strong balance sheet of the companies helping them to come with better quarterly numbers. In other words, we can say that mergers would help a company to improve its fundamentals, which will attract more portfolio investment, leading to sharp upside in their share price." On vision behind such move, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Such mergers are new in India but not in global