DFC First Bank, IDFC First bank merge

IDFC First Bank and IDFC Monday said both their respective boards had approved a merger ratio of 155:100. The share exchange ratio for IDFC First Bank is 155 shares of IDFC First Bank for every 100 shares held in IDFC. The combination will create value for IDFC shareholders and provide direct shareholding in IDFC First Bank. With this transaction, we are very happy to welcome all the shareholders of IDFC to become direct shareholders of IDFC First Bank, said V Vaidyanathan, the managing director of IDFC First Bank. We have built a strong foundation for our bank, including a robust deposit franchise, digital innovation, customer-friendly products, strong capital buffer, growing profitability and high corporate governance. As of March 31, 2023, the bank's standalone book value per share would rise by 4.9%, as calculated on audited financials as of March 31, 2023. As IDFC looks to completion the last phase of its corporate restructuring, the merger with IDFC First Bank will help create a financial services powerhouse enabling seamless delivery of services to our customers, said Anil Singhvi, the chairman of IDFC. It will enhance operational efficiency for the merged company and create synergies for our shareholders. Under the scheme of amalgamation, the bank will issue and allot to the eligible shareholders of IDFC, 155 new equity shares of the face value of 10 each cancelling the shareholding of IDFC held through IDFC Financial Holding in the Bank in its entirety. The shares of IDFC vs IDFC First Bank will have a premium of about 20 percent on the closing market price of IDFC shares on June 30. IDFC also paid a special dividend of 11 per share to its shareholders in February. IDFC was required to hold a minimum of 40 percent equity in the bank for five years until September 30, 2020, according to RBI's licensing rules. Since then, IDFC has received an in-principle approval from the RBI to merge IDFC and its holding company with the bank.