IDFC, IDFC First Bank boards seal share swap

economictimes.indiatimes.com:

IDFC First Bank and IDFC Monday said that both their respective boards had approved a merger ratio of 155:100. The share exchange ratio is fixed at 155 shares of IDFC First Bank for every 100 shares held in IDFC.

The merger will create value for IDFC's shareholders and provide direct shareholding in IDFC First Bank. «With this merger, we are very happy to welcome all the shareholders of IDFC to become direct shareholders of IDFC First Bank,» said V Vaidyanathan, managing director of IDFC First Bank.

«We have built a strong foundation for our bank including a strong deposit franchise, digital innovation, customer-friendly products, strong capital buffer, growing profitability and high corporate governance.» As a result of the proposed merger, the standalone book value per share of the bank would increase by 4.9%, as calculated on audited financials as of March 31, 2023. «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,» said Anil Singhvi, chairman of IDFC.

«It will augment operational efficiency for the merged entity and create synergies for our shareholders.» As per the share exchange ratio under the scheme of amalgamation, the bank will issue and allot to the eligible shareholders of IDFC, 155 new equity shares of the face value of ₹10 each cancelling the shareholding of IDFC held through IDFC Financial Holding in the Bank in its entirety. The share exchange ratio will result in a premium of about 20% on the closing market price of the shares of IDFC versus IDFC First Bank on June 30.