The private sector IDFC Limited and IDFC First Bank are merging. The majority of IDFC First Bank shareholders have approved this merger. The Chennai Bench of the National Company Law Tribunal (NCLT) organized this meeting.
IDFC First Bank Informed The Stock Exchange About The Decision
IDFC First Bank has informed the stock exchange about the shareholders’ decision. The bank said that the merger proposal had been approved by 99.95 per cent of equity shareholders. This decision was made through e-voting and remote e-voting at the meeting organized by NCLT. Soon, the National Company Law Tribunal can also announce this decision.
RBI Had Approved The Merger In December
The Reserve Bank of India (RBI) permitted the reverse merger of IDFC Limited and its banking subsidiary IDFC First Bank in December 2023. The boards of IDFC Financial Holding Company Limited, IDFC Limited, and IDFC First Bank approved this merger in July 2023. Under this proposed reverse merger scheme, IDFC shareholders will get 155 shares instead of 100. The face value of IDFC Limited and IDFC First Bank shares will be Rs 10.
Shares Jumped During Special Trading On Saturday
Due to approval for the merger of IDFC Limited and IDFC First Bank, their shares rose during special trading on Saturday. IDFC shares closed at Rs 114.35, up Rs 0.10 on BSE. Besides, shares of IDFC First Bank also jumped by Rs 0.20 and closed at Rs 77.44.
IDFC First Bank Started In The Year 2015
IDFC Limited was established in 1997 to finance infrastructure projects. In 2014, the company was approved by RBI to enter the banking sector. After this, IDFC First Bank started operations in October 2015.
