IDFC FIRST Bank Completes Merger with IDFC Limited, Announces Growth Prospects

IDFC FIRST Bank finalized its merger with IDFC Limited, effective October 1, 2024, following all required approvals. This merger introduces a simplified corporate structure, significant cash inflows, and reduction in paid-up shares. The bank forecasts growth opportunities in India’s expanding economy.

IDFC FIRST Bank has officially completed its merger with IDFC Limited, as announced in a board meeting today, marking the finalization following all necessary shareholder and regulatory approvals, effective from October 1, 2024.

This merger will result in the allotment of 155 equity shares of IDFC FIRST Bank for every 100 equity shares of IDFC Limited held by shareholders as of the record date, October 10, 2024. The shares will be credited to shareholders of IDFC Limited by or before October 31, 2024, contingent upon regulatory processes.

The key benefits for IDFC FIRST Bank include a simplified corporate structure, the inflow of approximately Rs 600 crores of cash, a reduction of over 16 crore equity shares in its paid-up share capital, and the potential to pay dividends in the future. The merger positions the bank to capitalize on India's rapid economic growth, with forecasts suggesting significant opportunities in various banking sectors. MD & CEO Vaidyanathan lauded the merger as a landmark moment, highlighting the bank's potential to grow into a world-class institution.

(With inputs from agencies.)