IDFC First Bank Merger: IDFC First Bank Completes Merger with IDFC Limited, Simplified Structure and No Promoter Holding - Read Now
IDFC First Bank Merger: IDFC First Bank has successfully completed the merger with IDFC Limited, the bank announced on Friday. The merger process has been finalized after receiving all necessary approvals from shareholders and regulators.
According to the bank, the merger officially takes effect from October 1, 2024. As part of the merger agreement, shareholders of IDFC Limited will receive 155 equity shares of IDFC First Bank for every 100 equity shares of IDFC Limited they hold. The record date for this exchange is set for October 10, 2024, and the shares are expected to be credited by October 31, 2024.
The merger brings significant changes to IDFC First Bank’s structure. Post-merger, the bank will no longer have a holding company, leading to a more straightforward corporate setup. Additionally, the bank has announced that it will no longer have any promoter holding, aligning itself with other leading private sector banks in India.
The merger will also bring a cash inflow of around ₹600 crore to IDFC First Bank.
Speaking about the merger, V Vaidyanathan, MD & CEO of IDFC First Bank, stated that this marks the end of two years of intense work. He added that IDFC First Bank will now operate with a simplified structure and without promoter holding.
This merger strengthens IDFC First Bank’s position and opens up new growth opportunities as it continues to be managed professionally without any promoter involvement.
