New Delhi: The National Company Law Tribunal (NCLT) has approved the merger of IDFC Financial Holdings with IDFC Limited, paving the way for their merger into IDFC First Bank. This decision follows the approval by the boards of IDFC Financial Holdings, IDFC, and IDFC First Bank in July 2023.
In December 2023, the Reserve Bank of India gave its nod for the reverse merger, under which IDFC shareholders will receive 155 shares for every 100 shares held in the bank. Both IDFC and IDFC First Bank shares carry a face value of Rs 10 each.
The merger is seen as a consolidation of IDFC’s financial services into its banking arm, which began with the 2018 merger of IDFC Bank and Capital First. IDFC First Bank has been operational since 2014 after receiving its license from the RBI.
On the stock market, shares of IDFC and IDFC First Bank fell for a second consecutive session, closing 0.9% lower on Wednesday, reflecting broader market trends, as the NSE Nifty 50 gained 0.25%. IDFC shares closed at Rs 109.87, while IDFC First Bank shares ended at Rs 73.02.
