Reserve Bank approves IDFC-IDFC First Bank merger

The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said.

Update: 2023-12-27 23:30 GMT

Representative Image

NEW DELHI: Reserve Bank of India has given its nod for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank.

The boards of IDFC First Bank and IDFC have approved the reverse merger in July.

‘....IDFC Limited and IDFC Financial Holding Company (IDFC FHCL) have received letters dated December 26, 2023 from RBI whereby RBI has conveyed its ‘No Objection’ to the composite scheme of amalgamation, subject to compliance with the terms specified therein,’’ IDFC Ltd said in a regulatory filing. As part of the composite scheme of amalgamation, IDFC FHCL would first merge with IDFC and then IDFC into IDFC First Bank Ltd. The scheme remains subject to other statutory and regulatory approvals, including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved under the applicable laws, it said.

Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each. Post-merger, the standalone book value per share of the bank will go up by 4.9 pc, as calculated on the audited financials as of March 2023, it said, adding as of June 2023, IDFC via its non-financial holding company, owned 39.93 per cent in IDFC First Bank.

Tags:    

Similar News