IDFC shares in focus following completion of merger with IDFC First Bank

IDFC FIRST Bank has completed its merger with IDFC after it received all requisite shareholder and regulatory approvals. The merger will be effective from October 01. Under the scheme of arrangement for the merger, investors will get 155 equity shares of the Bank for every 100 shares held in IDFC Ltd.

The record date to determine the eligibility of such shareholders is fixed as October 10 and shares are expected to be credited to shareholders of IDFC on or before October 31. The merger of IDFC First Bank and IDFC is expected to simplify the corporate shareholding structure. Further, as part of the merger, about Rs 600 crores of cash and cash equivalents will flow to the Bank.



"The announcement of the merger between IDFC FIRST bank and IDFC Ltd brings closure to the intense work over the last 2 years. I am sincerely thankful for IDFC for simplifying the structure and clearing the decks and for fruitful discussions, which helped put the merger together," said Vaidyanathan, MD & CEO, IDFC FIRST Bank. Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.

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All global corporations like Bank of America, JP Morgan, HDFC Bank , and ICICI Bank are professionally managed institutions with no promoter holding. "Over the last 5 years, IDFC FIRST Bank has built a strong foundation, excellent working culture, ethical banking approach, high focus on digitization & technology and a focus on Social good. We believe these essential foundations built will help IDFC FIRST Bank to grow into a world-class bank in the future," Vaidyanathan said.

Following the merger, IDFC First Bank will now also be eligible to pay dividends. Due to losses posted by the Bank in its early years largely due to legacy infrastructure and corporate loan accounts, it was restricting the Bank's ability to pay dividends to shareholders. The accumulated losses of the Bank will be set off against the Securities premium Account of the Bank as part of the merger scheme.

This would now enable the Bank to explore opportunities to pay dividends in future. On Friday, IDFC First Bank shares closed 0.22% higher at Rs 74.

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