IDFC First Bank In Favour Of Merging With IDFC, IDFC Financial Holding
The bank's board has constituted and authorised a panel, Capital Raise and Corporate Restructuring Committee, to work on the terms of the proposed merger, including finalising the scheme, valuation and other processes, according to its filing.
The merger is subject to the approval of the boards, shareholders, creditors of the other two entities, as well as statutory and regulatory approvals.
Soon after, the boards IDFC and IDFC Financial Holding gave their “in‐principle” approval for the merger. They also constituted a ‘Corporate Restructuring Committee’, to work on the terms of the deal.
BloombergQuint had reported earlier that shareholders believe a reverse merger of IDFC with IDFC First Bank is the answer to end the underperformance of the former. This became possible after the Reserve Bank of India, in July, said it would allow amalgamation between holding companies and subsidiary banks. At the time, analysts said IDFC and IDFC First Bank would benefit from such a reverse merger as well.