NCLT Greenlights IDFC-IDFC First Bank Merger
In a significant development, IDFC Ltd announced that the National Company Law Tribunal (NCLT) in Chennai has approved the merger of IDFC Financial Holding Company with IDFC, facilitating their integration into IDFC First Bank. This decision, made on September 25, 2024, marks a crucial step in the company’s restructuring efforts.
According to a regulatory filing from IDFC Ltd, the company is currently in the process of obtaining a certified true copy of the NCLT order and completing the necessary statutory and regulatory formalities to make the merger effective. This approval follows a letter dated July 3, 2023, in which the board of directors outlined the proposed merger plans.
Earlier this year, shareholders of IDFC First Bank expressed their support for the merger, with a substantial majority voting in favor of the resolution. The proposal received overwhelming backing, with over 75% of equity shareholders endorsing the scheme. Additionally, the amalgamation was strongly supported by Non-Convertible Debenture (NCD) holders, with 99.99% voting in favor during the voting process.
The Reserve Bank of India had already granted approval for the reverse merger of IDFC Ltd with its banking subsidiary back in December 2023, setting the stage for this transformative merger.
