IDFC To Merge With IDFC First Bank, Effective 1 October

IDFC has announced the approval of its long-anticipated amalgamation with IDFC First Bank, a move set to take effect from 1 October 2024. In a significant development, IDFC’s Board of Directors confirmed the amalgamation of its subsidiaries, marking a major step in the consolidation of its financial operations.

The merger, which also involves IDFC Financial Holding Company (IDFC FHCL), was sanctioned by the National Company Law Tribunal (NCLT), Chennai Bench, on 25 September 2024. The merger will be executed in two phases. First, IDFC FHCL will merge into IDFC Limited on 30 September, followed by the merger of IDFC Limited into IDFC FIRST Bank on 1 October.

The key details of the merger include the appointed date of 30 September 2024, for the merger of IDFC Financial Holding Company (IDFC FHCL) into IDFC Limited, followed by the merger of IDFC Limited into IDFC First Bank on 1 October 2024.

The record date for determining eligible IDFC shareholders for share allotment in IDFC FIrst Bank is set for 10 October 2024. As per the share exchange ratio, IDFC shareholders will receive 155 equity shares of Rs 10 each in IDFC First Bank for every 100 equity shares of Rs 10 each they hold in IDFC.

Following the merger, IDFC FHCL and IDFC Limited will be dissolved without being wound up.
IDFC First Bank will continue to operate with only public shareholders. Directors, Key Managerial Personnel, and Statutory Auditors of IDFC FHCL and IDFC will vacate their offices as of 1 October. There will be no changes in the Directors or management of IDFC First Bank.

Formalities to cancel RBI registration certificates for IDFC FHCL and IDFC Limited as NBFCs will be initiated. This strategic merger aims to streamline operations and enhance shareholder value, marking a new chapter for IDFC FIRST Bank as it consolidates its position in India’s banking sector.