“Investor Alert: IDFC First Bank Share Price in Freefall After Board Gives Nod to Merger”

 IDFC First Bank Share Price
IDFC First Bank Share Price

IDFC First Bank Share Price details

A day after the board of IDFC First Bank approved its merger with IDFC, Tuesday (July 4) morning trade on the BSE saw shares of IDFC rise 6% to reach their new 52-week high of 115.70 while shares of IDFC First Bank fell 6%.

In comparison to the previous closing of 109.10, the IDFC share price began at 115.40 and increased by 6% to a 52-week high of 115.70. In trading thus far, the share price of IDFC First Bank has dropped 6% to an intraday low of 77.10 from an opening price of 81.94 against the previous close of 81.94.

However, all of the gains were quickly lost, and at 9:45 am, shares of IDFC were trading 0.14 per cent lower at 108.95, while those of IDFC First Bank were down 5.09 per cent at 77.77.

As Mint previously reported, the ratio of the agreement has been set at 155:100 and the board of IDFC First Bank authorised its merger with IDFC on July 3 through an amalgamation strategy. The merger is expected to be finished by the end of this year, according to the private sector lender.

According to the planned merger, holders of 100 shares of IDFC Ltd will receive 155 shares of IDFC First Bank. In a regulatory filing to the stock exchanges on July 3,

IDFC First Bank nse stated: “The share exchange ratio for the amalgamation of IDFC Limited with IDFC First Bank shall be 155 equity shares of the face value of 10/- each fully paid-up of IDFC First Bank for every 100 equity shares of the face value of 10/- each fully paid-up of IDFC Ltd.”

According to IDFC First Bank, 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 assist in streamlining the aforementioned firms’ regulatory compliances.

The total assets and revenue of IDFC First Bank as of March’s end were 2.4 lakh crore and 27,194.51 crores, respectively. The bank declared a net profit for FY23 of 2437.13 crores. The total assets of IDFC Ltd were $9,570.64 crore, while its revenue was $2,076 crore.

Global brokerage company CLSA has kept its ‘underperform’ view on IDFC First Bank with a target price of $85 according to CNBC-TV18. The swap ratio for the proposed transaction is viewed by CLSA as being most favourable for IDFC shareholders.

The proposed merger, which is anticipated to be completed in 12 to 15 months, won’t have an impact on Nuvama’s chances of inclusion, the company added. The stock’s failure to reach the required price cut-off level may be the only deterrent.

V. Vaidyanathan, The CEO of IDFC FIRST Bank

The MD and CEO of IDFC FIRST Bank, V. Vaidyanathan, said: “With this merger, we are very happy to welcome all the shareholders of IDFC Ltd to become direct shareholders of IDFC FIRST Bank.”

A domestic financial organisation that has been financing infrastructure since 1997, IDFC Ltd, received in-principle approval from the RBI in April 2014 to establish IDFC Bank Ltd. The bank opened for business in October 2015.

The IDFC Bank and Capital First combined on December 18, 2018, and IDFC First Bank was later given that name. By way of its non-financial holding company, IDFC Ltd. owned 39.93% of IDFC First Bank as of June 30, 2023.

Full-service universal bank IDFC First Bank is present throughout India. Since the merger, the bank has developed a strong deposit franchise that would total Rs. 136,812 crore by March 31, 2023, growing at a 4-year CAGR of 36%.

“IDFC First Bank is positioned to expand profitably over the long term. Such expansion at the bank will benefit all of the stakeholders, providing a chance to create value over the long term, according to the bank.

As of March 31, 2023, the Bank had installed 809 branches and 925 ATMs. Its CASA ratio climbed from 8.6% at the time of its merger with Capital First in December 2018 to 49.77%

IDFC First Bank Share Price Today

IDFC First Bank Share Price today
IDFC First Bank Share Price today

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