IDFC First Bank to Merge with IDFC Ltd

Category : Business and economics Published on: July 06 2023

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IDFC First Bank and IDFC Ltd have announced their merger plans, with a share exchange ratio of 155 equity shares of IDFC First Bank for every 100 equity shares of IDFC.
The merger aims to simplify the corporate structure, increase the book value per share, and streamline regulatory compliances.
The merger is expected to be completed in the current financial year, subject to unforeseen circumstances.
In March 2023, IDFC Ltd and IDFC Financial Holding Company Ltd appointed Axis Capital Ltd to determine the fairness of the share exchange ratio for the merger.
The merger is expected to increase the book value per share of IDFC First Bank by 4.9 percent, based on audited financials as of March 31, 2023. It will consolidate IDFC FHCL, IDFC Limited, and IDFC First Bank into a single entity, simplifying the corporate structure.
IDFC First Bank is a prominent banking institution in India.
The bank was formed through the merger of IDFC Bank Ltd and Capital First Ltd in December 2018.