IDFC First Bank’s board of directors granted approval for the merger of IDFC Limited and IDFC First Bank

Mumbai, July 3rd, 2023 The Scheme of Amalgamation of IDFC Limited with IDFC First Bank has been accepted by the Board of Directors of IDFC First Bank Limited (“IDFC First Bank” or “the Bank”) at its meeting held today, July 03, 2023. The share exchange ratio for the combination of IDFC Limited and IDFC First Bank shall be 155 equity shares of IDFC First Bank with a face value of 10 cents each that are completely paid-up for every 100 equity shares of IDFC Limited with a face value of 10 cents each that are fully paid-up.

According to calculations based on audited financials as of March 31, 2023, the proposed merger would result in a 4.9% rise in the standalone book value per share of the Bank.

Rationale: The merger will simplify the corporate structures of IDFC FHCL, IDFC Limited, and IDFC First Bank by combining them into a single organisation. It will also make the aforementioned firms’ regulatory compliance procedures easier to manage.
As with other significant private sector banks, the merger will contribute to the establishment of a company with diversified institutional and public shareholders and no promoter holding.

The Scheme is dependent upon receiving the necessary approvals from the Reserve Bank of India (“RBI”), Securities and Exchange Board of India (SEBI), Competition Commission of India, National Company Law Tribunal, BSE Limited, and National Stock Exchange of India Limited (collectively, the “Stock Exchanges”), as well as other statutory and regulatory authorities, and the respective shareholders, in accordance with the relevant laws.