IDFC-IDFC First Bank merger explained

IDFC First Bank to be merged with IDFC

IDFC First Bank’s board has approved merged of the lender into IDFC. The proposed merger comes days after the completion of the biggest-ever merger in India’s corporate history, between HDFC and HDFC Bank.

First major merger in Indian banking space after mega HDFC-HDFC Bank deal

The proposed IDFC-IDFC First Bank merger comes days after the completion of the biggest-ever amalgamation in India’s corporate history, between HDFC and HDFC Bank.

What does the IDFC-IDFC First Bank merger mean for investors?

IDFC has said the proposed deal will create value for its shareholders.

How shares reacted to the news

IDFC shares closed 1.9% higher for the day, after scaling a record peak during the session. IDFC Bank shares, on the other hand, fell 4% after the development.

IDFC-IDFC First Bank merger share-swap ratio

Under the deal, investors will get 155 IDFC First Bank shares for every 100 shares held in IDFC.

What analysts say on IDFC-IDFC First merger

Analysts say the share-swap ratio proposed under the merger is likely to benefit IDFC shareholders.

Should you buy IDFC First Bank shares?

CLSA has maintained its 'underperform' rating on IDFC First Bank with a target of Rs 85, implying upside potential of 3.7 per cent. Morgan Stanley has retained its 'equal-weight' call on the stock with a target price of Rs 80.

What’s the relationship between IDFC and IDFC First Bank?

IDFC, through its subsidiary IDFC FHCL, holds a 39.93% stake in IDFC First Bank.

What does it mean for IDFC First?

IDFC First Bank said the deal will boost its standalone book value by 4.9% and balance sheet by 20-25%.