IDFC First Bank Shareholders And Debenture Holders Approve Merger Proposal At NCLT Meeting

IDFC First Bank's shareholders and non-convertible debenture (NCD) holders have approved the merger proposal with its parent company, IDFC Limited, during a meeting convened by the National Company Law Tribunal (NCLT) on May 17, 2024. The scheme, named the composite scheme of amalgamation, entails a two-step merger process involving IDFC Financial Holding Company Limited (IDFC FHCL) merging with IDFC Limited first, followed by the amalgamation of IDFC Limited into IDFC First Bank. \r

Regulatory filings reveal overwhelming support, with 99.95% of equity shareholders and 99.99% of NCD holders backing the proposal. The merger aims to streamline the corporate structure by consolidating IDFC FHCL, IDFC Limited, and IDFC First Bank into a single entity, with anticipated benefits including a 4.9% increase in IDFC First Bank's book value per share. Pending final approval from the NCLT, the RBI has already granted a no-objection certificate (NOC) for the merger, with IDFC shareholders set to receive 155 shares of IDFC First Bank for every 100 shares held in IDFC.