IDFC Ltd on Wednesday announced that it will invest Rs 2,200 crore in the IDFC First Bank to increase its stake in the bank to 40 percent. Currently, it has a total share of 36.38 percent in IDFC Bank.
This will provide growth capital to the bank, the company said in a statement.
The shares of IDFC Ltd and IDFC First Bank, opened higher on Thursday. At the last hour, the shares were trading 4.9 and 4.3 percent higher, respectively.
The board also declared a special interim dividend of Rs 11 per share to the stakeholders, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.
This is the largest dividend per share ever declared by IDFC, the company said.
It added that the Board of IDFC, IDFC Financial Holding Company Limited (IDFC HFCL) and IDFC First Bank had decided to merge IDFC and IDFC HFCL with IDFC First Bank in December 2021.
"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 NCLT," the statement added.
IDFC has a share of 36.38 percent in IDFC First Bank. The share of foreign institutional investors in the bank has raised to 19.76 percent from 14.77 percent while stake of the domestic institutional investors (DII) has declined to 13.84 percent from 14.58 percent in the last 5 quarters.
In the last one week, IDFC First Bank has lost 1 percent share. The stock has gained 1.5 percent in three months, 20 per cent in a year, 44 percent in three years.
(Edited by : Anushka Sharma)
First Published: Feb 1, 2023 10:39 PM IST
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