IDFC gains as board approves demerger of financial unit

IDFC rose 1.28% to Rs 150.60 at 9:21 IST on BSE after the company's board approved a proposal to demerge its financing undertaking into its wholly-owned step-down subsidiary, IDFC Bank.

Meanwhile, the S&P BSE Sensex was up 143.74 points or 0.53% at 27,497.99

On BSE, so far 2.83 lakh shares were traded in the counter as against average daily volume of 8.37 lakh shares in the past one quarter.

The stock hit a high of Rs 151.95 and a low of Rs 149.25 so far during the day. The stock hit a 52-week high of Rs 166.70 on 21 July 2014. The stock hit a 52-week low of Rs 88.10 on 4 February 2014.

The large-cap company has an equity capital of Rs 1590.27 crore. Face value per share is Rs 10.

On a consolidated basis, IDFC's net profit fell 13.43% to Rs 421.40 crore on 15.75% increase in total income to Rs 2,487.46 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Thursday, 30 October 2014.

The board of IDFC at its meeting held on Thursday, 30 October 2014, approved a proposal to demerge its financing undertaking into its wholly-owned step-down subsidiary, IDFC Bank. IDFC Bank is a recently incorporated company by IDFC with a paid up capital of Rs 5 lakh and is currently not a listed company. Post demerger, the shares of IDFC Bank will be listed on the BSE and the NSE.

IDFC Bank will issue 1 equity share of Rs 10 each, fully paid up of IDFC Bank for every 1 equity share of Rs 10 each held in IDFC as a consideration for the demerger of financing undertaking of IDFC into IDFC Bank, to the shareholders holding shares of IDFC as on the record date.

The shareholders of IDFC will continue to hold their shares in IDFC. On completion of demerger, equity share capital of IDFC Bank will be held approximately 53% by IDFC Financial Holding Company (lDFC FHCL) (being incorporated), a 100% subsidiary of IDFC and approximately 47% by the shareholders of IDFC (as on the record date).

IDFC is India's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services.

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