Wednesday, June 23

IDFC Bank to seek shareholders’ nod next month for name change

IDFC Bank will seek shareholders’ nod next month to change its name to IDFC First Bank Ltd in the process of amalgamating Capital First and its entities.

The voting process for postal ballot and e-voting shall be held from December 4, 2018 to January 2, 2019, IDFC Bank said in a BSE filing Friday.

The bank’s board on January 13, 2018 had approved a composite scheme of amalgamation of Capital First, Capital First Home Finance and Capital First Securities (collectively referred as amalgamating companies) with IDFC Bank (amalgamated company).

IDFC Bank has already received approvals from the National Housing Bank, CCI, BSE, NSE, RBI, shareholders and creditors of the amalgamating companies as well as the amalgamated company.

Capital First and IDFC Bank would create a Rs 88,000-crore combined entity with the merger in an all-stock deal.

The share swap ratio for the merger is fixed at 139:10, meaning IDFC Bank will issue 139 shares for every 10 shares of Capital First.

IDFC had applied for a banking licence in 2013 and got in-principle approval for the same from the RBI in the following year.

Stock of IDFC Bank was trading flat at Rs 38.35 on BSE. Capital First traded at Rs 525, up 0.22 per cent.

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