New Delhi: The Reserve Bank of India has given its go ahead for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank.
“This is in connection with our letter dated July 03, 2023 informing about the decision taken by the Board of Directors of IDFC FHCL, IDFC and IDFC FIRST Bank approving the proposed Scheme under Sections 230 to 232 of the Companies Act, 2013, the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 and other rules and regulations framed thereunder, subject to receipt of various statutory and regulatory approvals. In this regard, we would like to inform you that IDFC Limited and IDFC FHCL have received letters dated December 26, 2023 from RBI whereby RBI has conveyed its ‘No Objection’ to the composite scheme of amaleamation, subject to compliance with the terms specified therein,” IDFC Ltd said in a regulatory filing.
The Scheme remains subject to other statutory and regulatory approvals inter alia including from the National Company Law Tribunal and the respective shareholders and creditors of the companies involved in the Scheme, under applicable laws, added IDFC Ltd.
IDFC Limited had on Novembers 13, 2023 received observation letter with ‘no adverse observations’ from BSE Limited and observation letter with ‘no objection’ from the National Stock Exchange of India Limited.
IDFC Board had Proposed Composite Scheme Of Amalgamation For The Amalgamation Of: (I) IDFC Financial Holding Company Limited (‘IDFC FHCL’) Into And With IDFC Limited (‘IDFC’), And (Ii) IDFC Limited Into And With IDFC FIRST Bank Limited (“IDFC FIRST Bank”).
Under the proposed reverse merger scheme, an IDFC shareholder will get 155 shares for every 100 shares she/he holds in the bank. Both stocks have a face value of Rs 10 each.