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IDFC First Bank and IDFC Ltd to Merge in Landmark Deal

IDFC First Bank and IDFC Ltd Join Forces in Merger Agreement

IDFC First Bank, in a recent regulatory filing, has announced its plan to merge with IDFC Limited and IDFC Financial Holding Company Limited. The merger proposal entails the amalgamation of IDFC Financial Holding Ltd into IDFC Ltd, followed by the merger of IDFC Ltd with IDFC First Bank.

This merger news comes shortly after the successful completion of the merger between HDFC Ltd and HDFC Bank, which was valued at Rs 3.2 lakh crore.

However, before the IDFC First Bank merger can proceed, it is subject to approval from various stakeholders and regulatory authorities such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), the Competition Commission of India, the National Company Law Tribunal, BSE Limited, and the National Stock Exchange of India Limited.

The regulatory filing also includes details about the share allotment arrangement for the merger. As per the filing, IDFC First Bank has proposed a share exchange ratio of 155 equity shares (credited as fully paid-up) of face value of ₹10 each of IDFC First Bank for every 100 fully paid-up equity shares of face value of ₹10 each of IDFC Limited.

Furthermore, the filing states that the board of directors of IDFC First Bank has approved the execution plan for the proposed merger.

V Vaidyanathan, the Managing Director and CEO of IDFC First Bank, expressed his satisfaction with the merger, stating that the bank has established a strong foundation with a robust deposit franchise, digital innovation, customer-friendly products, adequate capital reserves, growing profitability, and high corporate governance. He also welcomed the shareholders of IDFC Limited to become direct shareholders of IDFC First Bank and expressed enthusiasm in working towards their vision of creating a world-class bank in India with the support of existing and new shareholders.

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