IDFC First Bank, in its board meeting held on Thursday, has contemplated merging itself with ‘IDFC Ltd’ and ‘IDFC Financial Holding Company (Promoter Group), the company informed the exchanges.
This merger is yet to receive the approval of the board of directors, shareholders, creditors, and statutory and regulatory approval of the respective entities, IDFC First Bank said in a regulatory filing. The bank’s board has set up an authorized ‘Capital Raise and Corporate Restructuring Committee’ to work on the terms of the said merger, including finalising the scheme, valuation, and hiring advisors.
The boards of IDFC and IDFC FHCL, at their respective meetings on Thursday, mulled over the letter received by IDFC FIRST Bank regarding the aforesaid merger following which they gave “in principle” approval for the same.
The company said the further details will be furnished in the due course of time.
On December 31, IDFC stock surged more than 13% to Rs 63.30 during the intraday trading session after the board of IDFC First Bank showed thumbs up to the IDFC and IDFC Financial Holding Co (promoter group) with it.
Shares of IDFC First Bank also rose to more than 2.50%.