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As the RBI approves the merger with IDFC Fin Holding, shares of idfc share price increase by 3%. Should you purchase?

On December 19, after the Reserve Bank of India (RBI) approved the merger of idfc share price and IDFC Financial Holding Company with the bank, shares of IDFC First Bank increased by more than 3%, hitting a day’s high of ₹92.33 per share.

The private sector lender’s stock has increased by more than 6% over the past month, narrowly underperforming the benchmark Sensex’s 8% gain. A 52-week high of ₹100.74 per share had previously been reached by IDFC First Bank’s shares on September 5, 2023.

According to the submission made to the exchange, the Reserve Bank of India (RBI) has granted its approval for the combined scheme of amalgamation, provided that the terms and conditions listed below are followed.

The plan is still pending approval from a number of statutory and regulatory bodies, including the National Company Law Tribunal and the individual shareholders of the participating companies,” the document stated.

According to the bank , the merger is subject to the National Company Law Tribunal’s statutory and regulatory approvals as well as the consent of each company’s individual shareholders.

idfc share price

Following the announcement of the merger on July 3, IDFC First Bank. idfc share price will issue 155 shares for every 100 idfc share price .

The financial institution had previously reported strong loan growth momentum, with the July–September quarter showing an amazing 26.1 percent year-over-year increase. The main drivers of this noteworthy expansion were developments in home loans, auto financing, and rural finance.

The bank’s value and growth rates were revised by brokerage firm Axis Securities to 1.9x. We update our projections for advances growth upward and value the bank at 1.9x FY25E ABV, with the expectation that H2FY24 will continue to be robust. The brokerage firm stated in its report that “we believe advances growth would be better in H2FY24 due to the festive season in H2FY24 and H2’s better seasonally than H1.

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