Board of directors of IDFC First Bank agrees for its merger with IDFC
- IBJ Bureau
- Jul 04, 2023
The board of directors of IDFC First Bank on Monday approved the Scheme of Amalgamation of IDFC with IDFC First Bank.
The merger will take place with a share exchange ratio of 155 equity shares of face value of Rs 10 each of IDFC First Bank for every 100 equity shares of face value of Rs 10 each of IDFC.
As a result of the proposed merger, the standalone book value per share of the bank will increase by 4.9 per cent, as calculated on audited financials as of March 31, 2023.
“The merger will lead to simplification of the corporate structure of IDFC FHCL, IDFC and IDFC First Bank by consolidating them into a single entity and will help streamline the regulatory compliances of the aforesaid entities,” the bank said on the rationale of the merger.
“The merger will help create an institution with diversified public and institutional shareholders, like other large private sector banks, with no promoter holding,” it said.
“We now embark on the next phase of our growth journey towards our long-term vision, and to create sustainable shareholder value in the years to come,” IDFC First Bank Chairman Sanjeeb Chaudhuri said.