IDFC hires Axis Capital for fair opinion on share exchange ratio for merger with IDFC First

IDFC

IDFC Ltd and IDFC Financial Holding Company Ltd on March 21 said they have appointed Axis Capital Ltd for the fairness opinion on share exchange ratio for merger with the bank.

They have completed all stages of corporate simplifications. “The next step is the amalgamation with IDFC First Bank Limited,” the company said in an exchange filing. "We propose to complete the amalgamation in this financial year, barring unforeseen circumstances."

The company also appointed SSPA & Co, Chartered Accountants as registered valuer for recommendation of fair share exchange ratio and Cyril Amarchand Mangaldas - Law Firm for conducting legal due diligence, drafting and finalising scheme of amalgamation and filing regulatory applications.

On February 1, IDFC Ltd has said that its board had accorded in-principle approval to invest Rs 2,200 crore approximately in IDFC First Bank to take its equity holding up from the current 36.38 percent to a maximum of up to 40 percent.

This will provide growth capital to the bank, the company said in an exchange filing.

Further, the IDFC board has declared a special interim dividend of Rs 11 per share, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.