IDFC quashes rumours of delayed merger, says 'company committed to its ongoing corporate restructuring plan'

IDFC merger: In a regulatory filing, Infrastructure Development Finance Company (IDFC Limited) has refuted the claims published in an Indian business daily, and called the speculations ‘baseless, false and misleading’.

“This is with reference to the news article in economic times‐ Mumbai on November 16, 2022 captioned “IDFC Merger may be Delayed on Fair Value Issue…..The above mentioned article is baseless, false and misleading and from “unidentified sources”. These are all media speculations and do not serve the purpose of corporate governance for listed companies (sic),” the company filing read. 

Further they clarified that the company is committed to its ongoing corporate restructuring plan to enhance shareholders' value. 

“We wish to reiterate that the Company is committed to its ongoing corporate restructuring plan to enhance shareholders' value,” the filing read. 

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IDFC and IDFC First Bank Merger details:

In a regulatory filing on December 30, 2021, IDFC First Bank had given approval for the merger of IDFC and IDFC First Bank.

“We would like to inform that the Board of Directors of the Bank at its meeting held today, i.e. December 30, 2021, have considered the proposal for merger of ‘IDFC Limited’ and ‘IDFC Financial Holding Company Limited’ (“Promoter Group”) with ‘IDFC FIRST Bank Limited’ and have expressed that we are, in-principle, in favour of the above merger, subject to the approval of the Board of Directors, shareholders, creditors, statutory and regulatory approvals of the respective entities. The Board has constituted and authorized a committee namely ‘Capital Raise and Corporate Restructuring Committee’, to work on the terms of proposed merger including finalizing the Scheme, Valuation, hiring advisors etc. as required,” the filing stated.

In 2018, IDFC First Bank had announced the completion of its merger with Capital First Ltd.

On a combined basis, IDFC First Bank had on-book loan assets of Rs. 1,02,683 crore, as per the financial results for the quarter ended September 30, 2018. 

The merger was announced on January 13, 2018, and as per the terms of the merger agreement shareholders, it had received 139 shares of IDFC Bank for 10 shares held in Capital First Ltd.

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