Capital First settle in green;IDFC Bank 5% down on merger plan

Shares of Capital First today closed up 1.40 per cent while IDFC Bank ended the day down 5 per cent on the bourses following their announcement of merger.
IDFC Bank and non-banking financial company Capital First on January 13 said they have received approval from their respective boards for a merger.
During the day, the shares of the company surged 7.90 per cent to touch an intra-day high of Rs 902, which was also its 52-week high level on BSE.
At the end of today's trading session, the stock was quoted at Rs 847.60, up 1.40 per cent on BSE.

On NSE, Capital First opened at Rs 895, jumped to an 52- week high of Rs 901.85 and finally ended the day at Rs 843.30, up 0.69 per cent.
Meanwhile, shares of IDFC Bank slipped 5.46 per cent to touch an antra-day low of Rs 63.95 on BSE during the day and finally settled at Rs 64.25, down 5.03 per cent.

On NSE, IDFC Bank opened at Rs 68.70, touched a low of Rs 63.90 and finally ended the day at Rs 64.30, down 4.74 per cent.
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.