IDFC FIRST Bank completes merger with IDFC Ltd
IDFC FIRST Bank has completed its merger with IDFC Limited, effective October 1, 2024. The merger is the culmination of a major transaction over the last two years and has been approved by shareholders and regulators. Shareholders of IDFC Limited will own 155 shares of IDFC FIRST Bank for every 100 shares they hold, and the shares are expected to vest by October 31, 2024 subject to latest regulatory clearance.
The merger eliminates the holding company and simplifies the corporate structure, bringing IDFC FIRST Bank in line with other leading Indian private equity firms. This simplified structure removes promoter assumptions and positions the bank as a well-managed entity. Moreover, the merger strengthens the bank’s financial strength, adding ₹600 crore in cash and cash equivalents.
Vaidyanathan, MD & CEO of IDFC FIRST Bank emphasized that the merger builds on the strong efforts and is an important step for the governance and business strategy of the institution. The merger is expected to enhance the bank’s market position, reflecting its long-term strategic vision.
