IDFC First Bank: Debt and equity holders have approved the merger of IDFC and IDFC First Bank.
The bank’s board announced its vote on the merger proposal before the NCLT.
“We would like to inform you that the resolution approving this plan was passed by an overwhelming majority of 99.95% of equity shareholders, representing more than three-quarters of the value of the bank’s equity shareholders, voting via remote electronic voting and electronic voting in 2013. “The vote was taken during the meeting in accordance with the provisions of Sections 230 to 232 of the Companies Act,” the lender said.
In a separate filing, it said the proposal was passed by an overwhelming majority of 99.99 per cent of NCD holders.
As part of the complex merger plan, IDFC FHCL will first merge with IDFC and then IDFC into IDFC First Bank Ltd. Under the proposed reverse merger plan, IDFC shareholders will receive 155 shares for every 100 shares they hold in the bank. . The par value of the two shares is 10 rupees each. IDFC has been an infrastructure lender to the private sector and launched its banking subsidiary, IDFC Bank, in 2015, following larger rivals like ICICI and IDBI, but it failed to perform well. Like HDFC Bank, the merged IDFC First Bank will also have no promoter entity but will be fully owned by institutional and public shareholders.
IDFC started as an infrastructure lender in 1997. In April 2014, in-principle approval was obtained from the RBI for the establishment of a bank, and in October 2015, IDFC Bank was launched with the start of on-tap licensing, and later came to manage IDFC’s loans and liabilities. It has been transferred to the bank.
In December 2018, it acquired Capital First, a non-bank focused on consumers and small and medium-sized businesses since 2012, and changed its name to IDFC First Bank, becoming a full-service universal bank.
