Reverse Merger of IDFC and IDFC Frist Bank?

Reverse Merger of IDFC and IDFC Frist Bank?

18th Dec 2020

 

In August this year, there was news about the reverse merger of IDFC and IDFC First Bank but later the IDFC First Bank clarified that these were pure speculation and there has been no discussion regarding the reverse merger with IDFC Ltd at the Board of the Bank or at any level.

But now the probability of this reverse merger is very high and the company is waiting for RBI's guidelines on NBFC's according to Zee Business sources.

Almost a year may be required for this reverse merger to take place.

What if the reverse merger takes place?

• For every 1 share of IDFC Ltd shareholders will get 1.4 shares of IDFC First Bank.
• This reverse merger will unlock the value of IDFC Ltd as the company has a 40% stake in IDFC First Bank.
• IDFC Ltd will also be benefitted from IDFC Mutual Fund which has AUM (Asset Under Management) of almost one lakh crore.

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