The Board of Directors of IDFC First Bank Ltd. at its meeting held on Monday approved the Scheme of Amalgamation of IDFC Ltd. with IDFC First Bank with a share exchange ratio of 155 equity shares of face value of ₹10 each of IDFC First Bank for every 100 equity shares of face value of ₹10 each of IDFC Ltd.
As a result of the proposed merger, the standalone book value per share of the Bank would increase by 4.9%, as calculated on audited financials as of March 31, 2023.
“The merger will lead to simplification of the corporate structure of IDFC FHCL, IDFC Ltd. 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,” Sanjeeb Chaudhuri, chairperson, 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,” V. Vaidyanathan, MD & CEO, IDFC First Bank, said. “We look forward to building on our vision to create a world class Bank in India with the support of existing and new shareholders.”
