IDFC First Bank to merge with IDFC Limited: Ratio fixed at 155:100


The IDFC First Bank’s board of directors approved the merger of IDFC Limited and IDFC First Bank. The planned merger will combine the two organisations into a single entity, simplifying the organisational structure.

Under the proposed reverse merger strategy, an IDFC shareholder will receive 155 shares for every 100 shares held in the bank. IDFC First Bank said in a statement that both equities had a face value of Rs 10 apiece.

Based on audited financials as of March 31, 2023, the standalone book value per share of IDFC First Bank is estimated to increase by 4.9 per cent following the merger.

The merger is intended to ease regulatory compliance and create an organisation with diverse public and institutional owners, similar to other large private sector banks, while eliminating any promoter holding.

Also Read | IDFC FIRST Bank raises Rs 1,500 cr through tier-2 bond offering

IDFC Chairman Anil Singhvi stated that the merger is the final stage of IDFC’s corporate restructuring and will contribute in the creation of a financial services provider that provides consumers with seamless service delivery. It will improve the amalgamated entity’s operating efficiency and provide synergies for our shareholders.

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