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Moving a step closer to merger, shareholders of IDFC Bank have cleared the amalgamation of Capital First, Capital First Home Finance and Capital First Securities with the private sector lender.
“The resolution approving the amalgamation was passed by the equity shareholders with an overwhelming majority of 99.98 per cent votes in favour of the resolution,” IDFC Bank said in a regulatory filing on Tuesday.
The equity shareholders of the lender had met on Monday to approve the merger.
Capital First meeting
Similarly, shareholders of Capital First and its two wholly-owned subsidiaries, will be meeting on October 4 to clear the merger.
Shares of IDFC Bank, however, fell 6.15 per cent on Tuesday at the BSE and closed at ₹45.05 apiece.
Most approvals are now in place for the merger, and the new entity is likely to take shape before the end of the year.
IDFC Bank and Capital First had, on January 13 this year, announced a plan to merge, subject to regulatory approvals. In June, IDFC Bank received ‘No Objection’ from the Reserve Bank of India for the merger.
Leadership
Post-merger, Rajiv Lall, Managing Director and CEO of IDFC Bank, will take over as Non-Executive Chairman of the new entity. V Vaidyantahan, Chairman and Managing Director, Capital First, who is also a veteran banker, will become the MD and CEO of the new entity.
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