IDFC to invest Rs 2,200 crore in IDFC First Bank increasing its shareholding from 36.38 per cent to 40 per cent, announced on Wednesday.
IDFC (up 4.50 per cent) and IDFC First Bank (up 4.07 per cent) both gained ground. IDFC First Bank said in a statement that this will provide growth funding.
Furthermore, the IDFC board of directors declared a special interim dividend of Rs 11 per share, resulting in a Rs 287 crore payout to the Government of India, IDFC’s largest shareholder.
IDFC and IDFC Financial Holding have also began the merger process with IDFC First Bank.
In addition to approvals from shareholders, creditors, and the National Company Law Tribunal, the merger requires finalising the swap ratio, filing the plan, and receiving clearances from stock exchanges, the Reserve Bank of India, and the Competition Commission of India (NCLT).
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Commenting on the progress, Anil Singhvi, Chairman, IDFC, said, “We have completed the last step of corporate simplification by selling our Mutual Fund business to Bandhan Consortium for Rs 4500 crore.”
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