IDFC First Bank board favours merger with promoter entities

The private sector lender said the board has constituted and authorised a committee to work on the terms of the proposed merger.

This will include finalisation of the scheme, valuation, hiring advisors among others. (IE)
This will include finalisation of the scheme, valuation, hiring advisors among others. (IE)

IDFC First Bank on Thursday said its board has favoured the merger IDFC Ltd and IDFC Financial Holding Co Ltd (promoter group) with the bank.

The board of directors of the bank in a meeting held on December 30, 2021, considered the proposal for merger of IDFC Ltd and IDFC Financial Holding Co Ltd (promoter group) with IDFC First Bank, the bank said in a regulatory filing.

“We are, in principle, in favour of the merger, subject to the approval of the board of directors, shareholders, creditors and statutory and regulatory approvals of the respective entities,” the bank said in a regulatory filing.

The private sector lender said the board has constituted and authorised a committee — Capital Raise and Corporate Restructuring Committee — to work on the terms of the proposed merger.

This will include finalisation of the scheme, valuation, hiring advisors among others.

Earlier in July, the Reserve Bank of India allowed IDFC Ltd to exit as the promoter of IDFC First Bank as the five-year lock-in period ended, and paved the way for a potential reverse merger between two entities.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.