IDFC Bank formed after parent board okays de-merger
Mumbai: Infrastructure Development Finance Company Ltd (IDFC) on Thursday informed stock exchanges that it received the board’s approval to demerge its financial undertaking into a wholly-owned step-down subsidiary IDFC Bank Ltd.
The financial undertaking will include transferring related businesses of financing, project finance (fund-and non fund-based), fixed income and treasury comprising all assets, liabilities, movable and immovable properties, employees, consents, approvals, benefits, licenses, contracts, deeds and tax balances to IDFC Bank.
Post demerger, around 53% stake in IDFC Bank will be held by IDFC Financial Holding Company Ltd (FHCL), a wholly-owned subsidiary of IDFC Ltd, and remaining 47% will be held by the shareholders of IDFC Ltd. As per the demerger proposal, IDFC will issue one equity share of Rs 10 each, fully paid-up of IDFC Bank Ltd for every one equity share of Rs 10 each held in IDFC Ltd, to the shareholders.
According to the communiqué, the board of directors at its meeting held on Thursday also approved the listing of shares of IDFC Bank on National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE).
On BSE, IDFC’s stock moved up 2.6% to close at Rs 148.70, on Thursday. The move is to comply with the Reserve Bank of India (RBI)’s norms for new private sector banks which calls for separation of banks from non-lending business. As per the rule, banks need to be controlled by a financial holding company, which can separately promote other regulated financial services activities.
The central bank had issued two fresh banking licences in August – one to IDFC and another to Bandhan.
Mumbai: Infrastructure Development Finance Company Ltd (IDFC) on Thursday informed stock exchanges that it received the board’s approval to demerge its financial undertaking into a wholly-owned step-down subsidiary IDFC Bank Ltd.
The financial undertaking will include transferring related businesses of financing, project finance (fund-and non fund-based), fixed income and treasury comprising all assets, liabilities, movable and immovable properties, employees, consents, approvals, benefits, licenses, contracts, deeds and tax balances to IDFC Bank.
Post demerger, around 53% stake in IDFC Bank will be held by IDFC Financial Holding Company Ltd (FHCL), a wholly-owned subsidiary of IDFC Ltd, and remaining 47% will be held by the shareholders of IDFC Ltd. As per the demerger proposal, IDFC will issue one equity share of Rs 10 each, fully paid-up of IDFC Bank Ltd for every one equity share of Rs 10 each held in IDFC Ltd, to the shareholders.
According to the communiqué, the board of directors at its meeting held on Thursday also approved the listing of shares of IDFC Bank on National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE).
On BSE, IDFC’s stock moved up 2.6% to close at Rs 148.70, on Thursday. The move is to comply with the Reserve Bank of India (RBI)’s norms for new private sector banks which calls for separation of banks from non-lending business. As per the rule, banks need to be controlled by a financial holding company, which can separately promote other regulated financial services activities.
The central bank had issued two fresh banking licences in August – one to IDFC and another to Bandhan.
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