n addition to approving the merger of the two companies, the boards of directors of IDFC and IDFC Financial Holding also announced an exchange of 155 shares of IDFC FIRST Bank for every 100 shares of IDFC.
IDFC Limited, although publicly traded, is predominantly held by the government, along with a mix of mutual funds, foreign investors, and large domestic institutions. In this News Explained podcast, Nabodita Ganguly is joined by Hamsini Karthik, Senior Assistant Editor who talks about the merger in-depth.
IDFC Limited recently sold its AMC business, leaving the bank as its primary asset. This transaction has emphasised the fact that IDFC Limited’s financial strength heavily relies on the performance of IDFC First Bank. Consequently, there is not a significant holding company discount involved in this merger. The executives and bankers at IDFC Limited, including Chairman Anil Singhvi, have worked diligently to secure a favourable deal in this process. However, it’s important to…