IDFC Limited announced on September 27 that its Board of Directors has approved the amalgamation of its subsidiaries. In a meeting, the Board sanctioned the composite scheme of merger, which involves the merger of IDFC Financial Holding Company Limited (IDFC FHCL) into IDFC Limited, followed by the merger of IDFC Limited into IDFC FIRST Bank Limited.
The National Company Law Tribunal (NCLT) in Chennai approved the amalgamation scheme on September 25, 2024. IDFC stated that the merger of IDFC FHCL with IDFC Limited will take effect on September 30, 2024, while the merger of IDFC Limited with IDFC FIRST Bank will be effective from October 1, 2024.
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Key dates and details:
Appointed Date 1: September 30, 2024, for the merger of IDFC FHCL into IDFC Limited.
Record Date: October 10, 2024, for determining eligible IDFC shareholders for share allotment in IDFC FIRST Bank.
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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 held in IDFC.
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Post-Amalgamation Changes:
– Both IDFC FHCL and IDFC Limited will be dissolved without winding up.
– IDFC FIRST Bank will consist solely of public shareholders.
– The offices of Directors, Key Managerial Personnel, and Statutory Auditors of IDFC FHCL and IDFC Limited will be vacated as of October 1, 2024.
– There will be no changes to the management or Directors of IDFC FIRST Bank.
– The process to cancel the RBI registration certificates for IDFC FHCL and IDFC as NBFCs will begin.
