IDFC, Capital First $1.5 billion merger deal gets approval from CCI

The Competition Commission of India has approved the merger deal between Capital First Ltd and IDFC Bank.

"The whole process will take about six to nine months to start operating," said V Vaidyanathan, the executive chairman of Capital First here.

The two companies in separate regulatory filings to stock exchange BSE said that the CCI in its meeting on March considered and approved the proposed combination.

A fast-growing provider of loans to consumers and small businesses backed by buyout firm Warburg Pincus, Capital First is being acquired by IDFC for $1.5 billion.

The scheme remains subject to the approval from the Reserve Bank of India and other statutory and regulatory approvals, the two companies said.

The two companies in January this year announced a merger deal under which IDFC Bank will issue 139 shares for every 10 shares of Capital First.

Capital First will bring along with large retail network into infrastructure lender IDFC Bank, the Capital First chairman said.

Capital First's market value has grown 10-fold in the five years since it rebranded. It has grown a $3.5 billion loan book extending small sums to entrepreneurs.