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National Housing Bank (NHB), has given approval to the merger of the Capital First along with Capital Home Finance and Capital First securities Limited with IDFC Bank.
In a regulatory filing Capital First stated, “We would like to inform you that the National Housing Bank (NHB) has vide its letter dated February 19, 2018 intimated that NHB has no objection to the aforesaid amalgamation subject to its compliance with the applicable provisions of relevant acts, rules, regulations, etc in the matter.”
The share swap ratio for the merger is fixed at 139:10, which means IDFC Bank will issue 139 shares for every 10 shares of Capital First. It is expected that the merger will be completed in the next two- three quarters.
Furthermore, post merger the new entity will have a distribution network of 194 branches, 353 dedicated banking correspondent outlets, approx 9,100 micro ATM points, and will be serving more than 5 million customers.
