Still exploring merger options with financial institutions: Capital First
ET Bureau|
Jan 12, 2018, 08.25 AM IST
MUMBAI: Capital First said on late Thursday that it explores various opportunities on a continuous basis amid market talk that the Mumbai-based non-banking finance company could be considering a merger with IDFC Bank, which is up for sale.
"We would like to clarify that the Company evaluates various opportunities on a continuous basis and (that) the Company, as the matter of policy, does not comment on market speculation," Capital First said in a statement to the BSE.
National media reported this week that IDFC Bank, which had earlier scrapped a deal to merge with the Shriram Group, was said to be exploring a similar transaction with Capital First, which has more than five million customers in the retail and small and medium enterprises segments.
According to the reports, the matter has not yet been taken to the boards of the respective institutions. IDFC Bank shares surged about 9 per cent in two trading days to close at 68.55 per cent Thursday.
"As of the date of this email, the company confirms that there is nothing which requires disclosure under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time," Capital First said.
The merger, if it were to go through, would create a financial company with a market value of at least Rs 29,080.57 crore and operating presence across all business segments. Capital First has a market cap of Rs 7,728.75 crore, IDFC Bank Rs 21,351.82 crore and IDFC Rs 10,400 crore.
"We would like to clarify that the Company evaluates various opportunities on a continuous basis and (that) the Company, as the matter of policy, does not comment on market speculation," Capital First said in a statement to the BSE.
National media reported this week that IDFC Bank, which had earlier scrapped a deal to merge with the Shriram Group, was said to be exploring a similar transaction with Capital First, which has more than five million customers in the retail and small and medium enterprises segments.
According to the reports, the matter has not yet been taken to the boards of the respective institutions. IDFC Bank shares surged about 9 per cent in two trading days to close at 68.55 per cent Thursday.
"As of the date of this email, the company confirms that there is nothing which requires disclosure under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time," Capital First said.
The merger, if it were to go through, would create a financial company with a market value of at least Rs 29,080.57 crore and operating presence across all business segments. Capital First has a market cap of Rs 7,728.75 crore, IDFC Bank Rs 21,351.82 crore and IDFC Rs 10,400 crore.
