IDFC First Bank informed in a regulatory filing on Monday that its board of directors has allowed the amalgamation of IDFC Financial Holding Company Limited and IDFC Limited into the bank. According to the filing, the board has allowed the amalgamation of IDFC Financial Holding Ltd into IDFC Ltd and subsequently, IDFC Ltd will merge with IDFC Bank.
The announcement comes days after the completion of merger of HDFC Ltd and HDFC Bank. The merger deal of HDFC Bank was valued at Rs 3.2 lakh crore.
As per the filing, the merger is subject to the approval of shareholders and regulatory authorities like 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 share allotment arrangement has also been cleared in the filing. According to the bank, “The share exchange ratio for the amalgamation of IDFC Limited into and with IDFC First Bank shall be 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.”
The bank also informed that the board of directors has approved the manner in which the proposed transaction will be executed.
Commenting on the development, V Vaidyanathan, MD & CEO of IDFC First Bank, said, “With this merger, we are very happy to welcome all the shareholders of IDFC Limited to become direct shareholders of IDFC First Bank. 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. We look forward to building on our vision to create a world class bank in India with the support of existing and new shareholders.”
