IDFC First Bank and IDFC Shares Surge 2% Post NCLT Amalgamation Approval

These points highlight the significant developments and market reactions following the NCLT’s approval of the amalgamation, providing a comprehensive overview of the latest news about IDFC First Bank and IDFC. The recent rally in IDFC First Bank and IDFC shares following the NCLT nod for their amalgamation:

1. NCLT Approval: The National Company Law Tribunal (NCLT) in Chennai has approved the amalgamation of IDFC Financial Holding Company with IDFC Ltd, and subsequently, IDFC Ltd with IDFC First Bank.
2. Share Price Surge: Following the NCLT nod, shares of IDFC and IDFC First Bank rallied up to 2% on the BSE.
3. Day’s High: On the day of the announcement, IDFC First Bank shares reached a high of ₹73.94, while IDFC shares peaked at ₹112.05.
4. Regulatory Formalities: The bank is in the process of completing the necessary statutory and regulatory formalities to make the amalgamation scheme effective.
5. RBI Nod: The Reserve Bank of India had already given its approval for the reverse merger of IDFC Ltd with its banking subsidiary, IDFC First Bank, in December 2023.
6. Board Approval: The boards of IDFC First Bank and IDFC had approved the reverse merger in July 2023.
7. Historical Context: IDFC Bank was granted a license by the RBI in 2014, and it merged with Capital First in 2018 to form IDFC First Bank.
8. Shareholder Approval: The majority shareholders of IDFC First Bank approved the amalgamation at a meeting convened by the NCLT Chennai bench on May 17, 2024.
9. Market Impact: The merger is expected to increase the book value per share of IDFC First Bank by 4.9%, based on audited financials as of March 31, 2023.
10. Long-term Strategy: This amalgamation is part of IDFC First Bank’s long-term strategy to streamline operations and enhance shareholder value.