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IDFC Bank and Capital First on Saturday, January 13, 2018 announced that the boards of directors of IDFC Bank and Capital First at their respective meetings held on January 13, 2018, approved a merger of Capital First with IDFC Bank.
Pursuant to the merger which is subject to regulatory and shareholder approvals, IDFC Bank will issue 139 shares for every 10 shares of Capital First, the lenders said in separate filings to the exchanges.
This announcement is pursuant to IDFC Bank's stated strategy of "retailising" its business to complete their transformation from a dedicated infrastructure financier to a well-diversified universal bank, and in line with Capital First’s stated intention and strategy to convert to a universal bank, it added.
Mr. Vaidyanathan, currently Chairman and MD of Capital First, will succeed Dr. Rajiv Lall as MD and CEO of the combined entity upon completion of the merger and necessary regulatory approvals.
At 09:33 AM; the stock of Capital First was trading 7% higher at Rs 895 on BSE. IDFC Bank was quoting 1% higher at Rs 68.45, after falling 4% to Rs 65 on BSE in intra-day trade so far. It hit high of Rs 69.65 in early morning trade.