The Scheme remains subject to receipt of approval from the respective shareholders and creditors of the amalgamated company and the amalgamating companies.
Shares of Capital First and IDFC Bank rose 3-5 percent in the opening trade on Wednesday on the bank of RBI approval for amalgamation of companies.
Reserve Bank of India (RBI) conveyed no objection for the voluntary amalgamation of Capital First, Capital First Home Finance and Capital First Securities with IDFC Bank, subject to compliance with the terms and conditions specified therein.
The Scheme remains subject to receipt of approval from the respective shareholders and creditors of the amalgamated company and the amalgamating companies, National Company Law Tribunal, and other statutory and regulatory approvals, if any.
At 09:19 hrs Capital First was quoting at Rs 547.70, up 2.76 percent and IDFC Bank was quoting at Rs 39.90, up 4.31 percent on the BSE.
In the last one year, the shares of Capital First shed 24 percent, while IDFC Bank was down 33 percent.
Posted by Rakesh Patil