IDFC to hike stake in IDFC First Bank to 40%

IDFC said on Wednesday that it is investing Rs 2,200 crore in IDFC First Bank to increase its stake in the bank to 40% from 36.38% currently.

IDFC (up 4.50%) and IDFC First Bank (up 4.07%) advanced.

This will provide growth capital to IDFC First Bank, the company said in a statement.

Further, the IDFC board has declared a special interim dividend of Rs 11 per share, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.

Further, IDFC and IDFC Financial Holding have begun the process of merger with IDFC First Bank.

The merger involves finalising the swap ratio, filing of the scheme and obtaining approvals from the stock exchanges, the Reserve Bank of India, and the Competition Commission of India, apart from approvals by shareholders, creditors and National Company Law Tribunal (NCLT).

Commenting on the progress, Anil Singhvi, chairman of IDFC, said: "We have completed the last step of corporate simplification by selling our Mutual Fund business to Bandhan Consortium for Rs 4500 crore."

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