IDFC Ltd completes corporate restructuring, declares special dividend

IDFC Limited ("IDFC"), India's leading financial conglomerate, announced that the restructuring process involving the sale and consolidation of certain assets entered its last phase, making 2023 a year of corporate simplification.

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

The Board, at its meeting held today, accorded in-principle approval to invest Rs 2200 crore approximately in IDFC FIRST Bank to take its equity holding up from the current 36.38% to a maximum of up to 40%. This will provide growth capital to the Bank.

The Board also declared a special interim dividend of Rs.11/- per share to the shareholders. This is the largest dividend per share ever declared by IDFC. The government of India, which is IDFC's largest shareholder, will receive Rs 287 crore as this special interim dividend.

The Boards of IDFC, IDFC Financial Holding Company Limited (IDFC FHCL) and IDFC FIRST Bank had embarked on a plan by according "in principle approval" to merge IDFC and IDFC FHCL with IDFC FIRST Bank in December 2021.

This merger involves finalizing the swap ratio, filing of the scheme and approvals from the stock exchanges, Reserve Bank of India, Competition Commission of India, and approvals by shareholders and creditors and NCLT.

Shares of IDFC Limited was last trading in BSE at Rs. 84.50 as compared to the previous close of Rs. 85.70. The total number of shares traded during the day was 936573 in over 4972 trades.

The stock hit an intraday high of Rs. 89.90 and intraday low of 81.95. The net turnover during the day was Rs. 80923937.00.

Source : Equity Bulls

Keywords

IDFC INE043D01016 CorporateRestructuring SpecialDividend