National Company Law Tribunal Approves Merger Of IDFC With IDFC First Bank
Under the reverse merger plan, IDFC shareholders will receive 155 shares for every 100 shares they hold in the bank.
The National Company Law Tribunal has approved the merger of IDFC Financial Holdings Company Limited with IDFC Limited, leading to the merger of this combined entity into IDFC First Bank, IDFC reported to exchanges on Wednesday.
In May, most shareholders of IDFC First Bank approved the merger of IDFC with the bank.
In December 2023, the Reserve Bank of India approved the reverse merger of IDFC with its banking subsidiary, IDFC First Bank.
In July 2023, the boards of IDFC Financial Holdings Co, IDFC, and IDFC First Bank approved the merger.
Under the reverse merger plan, IDFC shareholders will receive 155 shares for every 100 shares they hold in the bank. IDFC and IDFC First Bank shares both have a face value of Rs 10 each.
In 2014, the RBI granted IDFC Bank its licence. In 2018, IDFC Bank and Capital First completed their merger to form IDFC First Bank.
Shares of IDFC and IDFC First Bank fell for the second consecutive trading session on Wednesday, with IDFC closing 0.9% down at Rs 109.87 and IDFC FIRST Bank ending 0.9% lower at Rs 73.02 on National Stock Exchange. That compared with 0.25% gains in the country's benchmark NSE Nifty 50.
