Shares of IDFC rose by 6 percent, reaching a 52-week high of ₹115.70, following the approval of its merger with IDFC First Bank.
IDFC First Bank's shares declined by 6 percent in response to the merger approval.
The merger aims to simplify the corporate structure of IDFC, IDFC First Bank, and IDFC FHCL into a single entity.
The exchange ratio for the merger is 155 shares of IDFC First Bank for every 100 shares held in IDFC Ltd.
IDFC First Bank reported total assets of ₹2.4 lakh crore and a turnover of ₹27,194.51 crore as of March-end.
IDFC Ltd had total assets of ₹9,570.64 crore and a turnover of ₹2,076 crore.
CLSA, a global brokerage firm, maintains an 'underperform' view on IDFC First Bank with a target price of ₹85.
Nuvama Alternative & Quantitative Research considers IDFC First Bank a top contender for inclusion in the MSCI August 2023 Standard Index.
Expert opinions vary regarding the impact of the merger on IDFC First Bank's performance and stock price.
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