IDFC surged 13.48% to Rs 63.15 after the board of IDFC First Bank favoured the merger of IDFC and IDFC Financial Holding Co (promoter group) with the bank.
Shares of IDFC First Bank were up 2.85% at Rs 48.80.The board of IDFC FIRST Bank in its meeting held on Thursday has confirmed that they are "in‐principle" in favour of merger of 'IDFC' and 'IDFC Financial Holding Company' (IDFC FHCL) (promoter group) with 'IDFC FIRST Bank'.
The proposed restructuring is subject to the approval of the board of directors, shareholders, creditors, statutory and regulatory approvals of the respective entities.
The board has also constituted and authorized a committee namely 'capital raise and corporate restructuring committee', to work on the terms of proposed merger including finalizing the scheme, valuation, hiring advisors etc. as required.
The company said further details will be provided as and when the scheme of merger is finalised.
IDFC Financial Holding Company holds 36.52% stake in IDFC First Bank as of September 2021, while IDFC holds 100% stake in IDFC FHCL.
IDFC is a financial services company in India and it advances infrastructure development in the country.
On a consolidated basis, IDFC reported net profit of Rs 261.89 crore in Q2 September 2021 as against net loss of Rs 145.27 crore in Q2 September 2020. Total income rose 269.07% to Rs 338.70 crore in Q2 September 2021 over Q2 September 2020.
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