IDFC First Bank Completes Merger with IDFC Limited

IDFC First Bank has finalized its merger with IDFC Limited, effective from October 1, 2024, following requisite approvals. The new structure allows 155 equity shares of IDFC First Bank for every 100 shares of IDFC Limited, simplifying corporate management and eliminating promoter holding. Approximately Rs 600 crore will be infused into the bank.

IDFC First Bank on Friday announced the completion of its merger with IDFC Limited, marking a significant step forward for both entities. The merger comes after obtaining all the necessary shareholder and regulatory approvals, effective from October 1, 2024, the bank stated.

Per the merger agreement, 155 equity shares of IDFC First Bank will be issued for every 100 shares held by IDFC Limited shareholders, effective from the Record Date of October 10, 2024. These shares are anticipated to be credited to IDFC Limited shareholders by October 31, 2024, contingent upon regulatory processes.

The merger will result in a simplified corporate structure for the bank with no promoter holding, aligning it with other major private sector banks in India. The bank will receive approximately Rs 600 crore in cash and cash equivalents through this process, enhancing its financial standing. "The announcement today brings closure to two years of intense work," said V Vaidyanathan, MD & CEO of IDFC FIRST Bank Limited.

(With inputs from agencies.)