Capital First jumps 8%; IDFC Bank slips 3% on merger plans

Shares of Capital First today surged nearly 8 per cent while IDFC Bank slipped more than 3 per cent in morning trade following their announcement of merger to create a Rs 88,000-crore combined entity.
IDFC Bank and non-banking financial company Capital First on January 13 said they have received approval from their respective boards for a merger.
Shares of Capital First surged 7.90 per cent to a high of Rs 902 on the BSE, while on the NSE the stock jumped 7.68 per cent to Rs 901.85.
Meanwhile, IDFC Bank slipped 3.62 per cent to a low of Rs 65.20 on BSE and on the NSE it fell 3.48 per cent to Rs 65.15.

Under the deal, IDFC Bank will issue 139 shares for every 10 shares of Capital First.
Post-merger, the combined entity will have an AUM of Rs 88,000 crore; PAT of Rs 1,268 crore (FY17); and a distribution network comprising 194 branches (as per branch count of December 2017 of both entities), 353 dedicated BC outlets and over 9,100 micro ATM points, serving more than five million customers across the country.
V Vaidyanathan, who is currently chairman and MD of Capital First, will succeed IDFC Bank Managing Director and CEO Rajiv Lall as MD and CEO of the combined entity upon completion of the merger and necessary regulatory approvals.

IDFC Bank is one of the youngest private lenders while Capital First is an NBFC backed by Warburg Pincus.