Business Mantra News
- The IDFC Bank made announcement of its merger with Non-Banking Finance Company (NBFC) Capital First on 15 January 2018. The Board of Directors of IDFC and Capital First have confirmed approval of merger of duo entities.
- It was agreed between two entities that IDFC Bank will issue 139 shares for every 10 shares of Capital First.
- V Vaidyanathan, who is presently designated as Chairman & MD of Capital First, would become MD & CEO of the new combine entity after the merger.
- The merger would bring fruitful results for both the companies, however it is the Capital First who will get more gains than IDFC.
- It is expected that the IDFC will catch a strong Retail Loan Book, while Capital First would be able to attain its financial goals to convert to a Universal Bank.
- This merger brought surge in the share price of Capital First and would be beneficial for the shareholders of both the companies in a long run.