Bank Merger New Update: Big changes are being seen in the Indian banking sector. Recently the merger of the country’s largest private sector bank HDFC Bank and HDFC Limited has been completed.
Bank Merger New Update: Big changes are being seen in the Indian banking sector. Recently the merger of the country’s largest private sector bank HDFC Bank and HDFC Limited has been completed. With this merger, it has become the fourth largest bank in the world. After this, now IDFC First Bank has announced merger with IDFC Limited. This bank is also preparing to merge with its group companies. The stock market was informed about this. After HDFC, this big update related to the banking sector is coming out.
IDFC board approves merger
The boards of IDFC First Bank and IDFC have approved the merger. However, information about the valuation of the unit to be formed after the merger was not given by the bank. However, based on the share price of both the companies on BSE a day ago, the market valuation is Rs 71,767 crore. Under the reverse merger, IDFC shareholders will get 155 shares for every 100 shares held in the bank.
The face value of both the shares is Rs 10.
A statement from IDFC First Bank said that the face value of both the shares is Rs 10. IDFC Chairman Anil Singhvi said that the merger is the last step in IDFC’s corporate restructuring. This will help in becoming a financial service provider. With this, the service to the customers will be completed without any hindrance.
4.9 percent growth expected
After the merger, the per share value of the bank may increase by 4.9 percent. This has been calculated on the audited financials up to March 2023. It said that till June 2023, IDFC through its non-financial holding company will hold 39.93 per cent stake. It holds 39.93 per cent stake in IDFC First Bank. A target has been set to complete the merger process this year itself.
Superstar Amitabh Bachchan is the brand ambassador of IDFC First Bank. After getting the approval of the board, the approval of RBI (RBI), SEBI (SEBI), NCLT (NCLT), Share Market and Competition Commission of India (CCI) is to be taken for the merger.
