IDFC share price rises 6%, IDFC First Bank share price falls 6% after board approves merger
IDFC rose 6 per cent to hit their fresh 52-week high of ₹115.70 while those of IDFC First Bank declined 6 per cent in morning trade on BSE on Tuesday (July 4) a day after the board of IDFC First Bank approved its merger with IDFC. IDFC share price opened at ₹115.40 against the previous close of ₹109.10 and rose 6 per cent to their 52-week high of ₹115.70. IDFC First Bank share price opened flat at ₹81.94 against the previous close of ₹81.94 and fell 6 per cent to an intraday low of ₹77.10 in trade so far.
Shares of IDFC, however, erased all gains soon and traded 0.14 per cent lower at ₹108.95 around 9:45 am while shares of IDFC First Bank were down 5.09 per cent at ₹77.77. As Mint reported earlier, the board of IDFC First Bank approved its merger with IDFC on July 3 through an amalgamation scheme and the ratio of the deal has been fixed at 155:100. The private-sector lender proposes to complete the merger by the end of this year.
This will be the second major merger deal in the financial sector in 2023 after HDFC Bank's merger with Housing Development Finance Corporation. Under the proposed merger, shareholders of IDFC Ltd will get 155 shares of IDFC First Bank for every 100 shares held in the former. ‘’The share exchange ratio for the amalgamation of IDFC Limited with IDFC First Bank shall be 155 equity shares of the face value of ₹10/- each fully paid-up of IDFC First Bank for every 100 equity shares of the face value of ₹10/- each fully paid-up of IDFC Ltd,'' said IDFC First Bank in a regulatory filing to the stock exchanges on July 3.
As of March-end, IDFC First Bank had total assets of ₹2.4 lakh crore and a turnover of ₹27,194.51 crore. For FY23, the bank reported a net profit of ₹2437.13 crore. IDFC Ltd had total
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