Merger Between IDFC and IDFC First Bank: Share Swap Ratio Announced - IDFC Shareholders To Receive THIS Amount Of IDFC First Bank Shares - Details
The share exchange ratio will result in a premium of about 20% on the closing market price of the shares of IDFC versus IDFC First Bank on June 30. IDFC also paid a special dividend of ₹11 per share in February to its shareholders.
Mumbai: An important event is the merger of the IDFC First Bank and IDFC (Infrastructure event Finance Company). Investors in IDFC will benefit from a favorable share conversion ratio as a result of the merger, which is expected to increase the value of their holdings.
Each 100 shares of IDFC will be converted into 155 shares of the merged company, under the merger's terms.
To give IDFC shareholders a chance to profit from the merger and maybe expand their investment holdings, this conversion ratio gives a benevolent exchange rate.
Creating a stronger financial organization that can take advantage of synergies and increase its banking product offerings is the goal of the merger between IDFC and the bank.
An interesting opportunity has been presented to IDFC stockholders with the announcement of this merger. Shareholders should anticipate a favorable exchange rate and the possibility for enhanced value in their investment portfolios with the conversion ratio of 100:155.
"The combination will lead to simplification of the corporate structure of IDFC FHCL, IDFC Limited, and the newly formed IDFC FIRST Bank by establishing them into a single entity and will help streamline the regulatory compliance of the aforesaid entities," the IDFC First Bank stated in a notice to stock exchanges announcing its intention to merge with another entity.
The bank's goal was to create a financial institution with a diverse shareholder ownership base made up of both institutional and public shareholders.
"We are delighted to welcome all the shareholders of IDFC Limited as direct shareholders of IDFC FIRST Bank as a result of this merger. According to IDFC First Bank CEO Vaidyanathan, "We have established a strong basis for our Bank, including a strong deposit franchise, digital innovation, customer-friendly products, robust capital buffer, expanding profitability, and high corporate governance.
The shares of IDFC First Bank ended the day higher at Rs 81.70, up 2.30 points from the previous session. With a 52-week high of Rs 84.50 and a 52-week low of Rs 30.60, the company has displayed resiliency.
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