As parent company IDFC Ltd indicated that it would complete the merger with its business during the current financial year, barring unforeseen circumstances, shares of private sector lender IDFC First Bank increased 1.38 percent to 55.05 per share during early trade on Tuesday.
According to IDFC, the corporate simplification process has reached its conclusion. It further stated that the company’s merger with IDFC First Bank is the following move.
“We’d like to let you know that the corporate simplification process has reached its conclusion. The following phase is the merger with IDFC First Bank Ltd “In a filing, IDFC Ltd. stated.
Furthermore, shares of IDFC Ltd. were trading 2.61 percent higher. at Rs. 78.60 on the NSE.
In line with the merger with IDFC First Bank, the board has designated Axis Capital Ltd to provide a fairness judgment on the share exchange ratio, according to IDFC.
The company announced that Cyril Amarchand Mangaldas, a legal firm, had been hired to handle business operations, create and finish the merger scheme, and file the regulatory application.
ICICI Direct sees IDFC First Bank stock to outperform in the near term
Brokerage firm ICICI Direct is bullish on IDFC First Bank, which is predicted to perform well over the coming few months, in the private banking industry.
“IDFC First Bank is following its recommendations successfully across the board. Growth has been prioritized, along with significant balance sheet restructuring and entry into new market categories (such as digital, gold, personal loans, and credit cards). The CI ratio needs to be increased from its present value of 73.3% to the aim of 55% in FY15 in order to further increase the return ratio. As a result, the report added, good retail performance, stable credit costs, and increasing efficiency should result in RoE of 10 to 12 percent in FY24 to FY25 and, consequently, value.
“We anticipate a recovery in the stock over the next three months and an increase to our target price of 64, which is the high point for December 2022. The weekly stochastic oscillator is returning from the oversold zone and producing a buy signal, verifying the optimistic bias, according to the brokerage.
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