Capital First to merge with IDFC Bank

Mumbai, January 13 

One of the youngest private lenders IDFC Bank and Warburg Pincus-backed non-banking financial company Capital First today announced a merger in an all-stock deal, creating a Rs 88,000-crore combined entity.

The boards of both companies, which met here today, fixed the share swap at 139:10, which means IDFC Bank will issue 139 shares for every 10 shares of Capital First. 

“We believe this merger will be transformational for IDFC Bank. It will bring two tech savvy, culturally aligned platforms to come together to create a diversified and fast growing universal bank with a national footprint,” IDFC Bank MD and CEO Rajiv Lall said. Capital First CMD V Vaidyanathan said, “We are excited about this merger because IDFC Bank provides a perfect platform for continued growth of the combined franchise, supported by low-cost funding.” — PTI