India's IDFC to merge with IDFC First Bank in latest consolidation (updated)

Housing Development Finance

03/07/2023 18:05

(Adds merger details in paragraphs 2-6)
       July 3 (Reuters) - IDFC First Bank  IDFB.NS  said on
Monday its board had given the green light for a merger with
IDFC Ltd  IDFC.NS , just days after the landmark $40 billion
merger between Housing Development Finance Corp and HDFC Bank
came into effect.
        IDFC Ltd shareholders will receive 155 shares of IDFC
First Bank for each set of 100 shares they currently own in IDFC
Ltd, according to an exchange filing.
  
        The boards of Housing Development Finance Corp  HDFC.NS 
and HDFC Bank  HDBK.NS  on Friday 
    approved July 1
     as the effective date of the two financial behemoths'
merger, the largest in India's corporate history.
  
        IDFC First Bank said its proposed deal would boost the
bank's standalone book value by 4.9% as of March 31, 2023 and
aims to increase its balance sheet by 20-25% per year in the
near to medium term.
  
        It added that the proposed merger will unify IDFC FHCL,
IDFC Ltd and IDFC First Bank, simplifying their corporate
structure and easing regulatory compliance.
  
        The deal is subjected to obtaining approvals from key
regulatory bodies including India's central bank and stock
exchanges.
  
        The merger will also eliminate promoter holding, IDFC
First Bank said.    
  

 (Reporting by Akriti Sharma and Siddhi Nayak; Editing by
Shailesh Kuber and Maju Samuel)
 ((Akriti.Sharma@thomsonreuters.com;))