Markets give thumbs up to IDFC-IDFC First Bank merger plan

Mumbai: Shares of IDFC First Bank and IDFC Ltd surged on the bourses on Friday after the bank announced that its board of directors were in favour of the merger with IDFC Ltd and IDFC Financial Holding. While IDFC Ltd rose more than 13%, IDFC First Bank climbed nearly 3%.

The bank also said in a filing that its board has constituted and authorised a 'Capital Raise and Corporate Restructuring Committee', to work on the terms of proposed merger, including finalising the scheme, valuation and hiring advisors.

Meanwhile, IDFC Ltd and IDFC Financial Holding Company at their respective board meetings too considered the merger proposal and gave an "in principle" approval for the proposed merger.