The Board of Directors of IDFC FIRST Bank have approved the Scheme of Amalgamation of IDFC Ltd with IDFC FIRST Bank. The share exchange ratio for the amalgamation of IDFC Limited with IDFC FIRST Bank will be 155 equity shares of the face value of Rs 10 each fully paid-up of IDFC FIRST Bank for every 100 equity shares of face value of Rs 10 each fully paid-up of IDFC Limited. The merger will lead to simplification of the corporate structure of IDFC FHCL, IDFC Limited and IDFC FIRST Bank by consolidating them into a single entity and will help streamline the regulatory compliances of the aforesaid entities. The merger will help create an institution with diversified public and institutional shareholders, like other large private sector banks, with no promoter holding.
The scheme is subject to the receipt of requisite approvals from the RBI, SEBI, the Competition Commission of India, the National Company Law Tribunal, BSE and the National Stock Exchange of India and other statutory and regulatory authorities, and the respective shareholders, under applicable law.
V Vaidyanathan, MD & CEO, IDFC FIRST Bank, said, “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. With this merger, we look forward to building on our vision to create a world-class bank in India with the support of existing and new shareholders.”
