The Merger of IDFC Ltd with IDFC First Bank has Been Approved by the bank’s Shareholders.
The shareholders of IDFC First Bank have approved the merger of IDFC Limited with the bank.
On May 17, a meeting was held by the National Company Law Tribunal (NCLT) to assess and approve the composite plan of merger of IDFC FIRST Bank. Merger of IDFC Financial Holding Company with IDFC Limited and amalgamation of IDFC Limited with IDFC First Bank was discussed.
According to IDFC First’s regulatory filing, the scheme received sufficient support from equity shareholders, over 75% in value, to receive the required majority approval.
It was reported that the conflation plan won a popular vote, as 99.99% of non-convertible debenture (NCD) holders who constituted three-fourths of the population approved through remote e-voting and e-voting in the interim.
The Reserve Bank of India (RBI) had decided in December 2023 that there would be a reverse merger of IDFC Ltd and its banking subsidiary IDFC First Bank.
The boards of IDFC Financial Holding Co. Ltd, IDFC Ltd, and IDFC First Bank had approved the merger in July 2023.
Read More : IDFC First Bank share price
As per the proposed reverse consolidation plan, IDFC investors will get 155 shares for every 100 bank shares held by them. Both IDFC Ltd and IDFC First Bank shares have a face value of ₹10 each.
Shares of IDFC First Bank closed at ₹77.44 per share on the Bombay Stock Exchange last Saturday, a marginal gain of 0.26%.
