IDFC First Bank
IDFC First Bank announces completion of merger with IDFC Ltd, effective from Oct 1
Mumbai/IBNS: Mumbai-headquartered private sector lender IDFC First Bank announced on Friday (Sept. 27) the successful completion of its merger with IDFC Limited, following all necessary shareholder and regulatory approvals, reports said.
The merger is set to take effect from October 1, 2024, according to the bank's official statement.
As part of the merger terms, shareholders of IDFC Limited will receive 155 equity shares of IDFC First Bank for every 100 equity shares they hold in IDFC Limited, based on the Record Date of October 10, 2024.
The shares are expected to be credited to IDFC Limited shareholders by or before October 31, 2024, subject to regulatory approvals.
The bank noted that post-merger, it will operate under a simplified corporate structure without a holding company, aligning its shareholding model with other major private sector banks in India, which do not have promoter ownership.
The institution will continue to be professionally managed, according to reports.
Additionally, the merger will result in an inflow of approximately Rs 600 crore in cash and cash equivalents into the bank.
Commenting on the merger, V Vaidyanathan, Managing Director and CEO of IDFC First Bank, said, "The completion of the merger between IDFC First Bank and IDFC Ltd brings an end to over two years of extensive efforts."
He further emphasized that the bank will now have a streamlined corporate structure with no promoter ownership.
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