IDFC Limited shares will be suspended from trading with effect from Thursday, October 10 which is the record date for the merger of IDFC First Bank and IDFC.
Post the merger, IDFC First Bank will witness a weight-up in the Bank Nifty index. The increase in weightage is likely to attract $ 39 million in the form of passive funds, according to a report by domestic brokerage firm Nuvama Institutional Equities.
According to Nuvama, NSE indices will be making the necessary adjustments today during the last 30 minutes of trading. However, due to the adjustments, other constituents will experience a slight decrease in their respective weights.
HDFC Bank and ICICI Bank are likely to witness an outflow of about $11 million and $10 million, according to the Nuvama research report.
The existing Futures & Options (F&O) contracts for IDFC Ltd set to expire in October, November, and December 2024, will now expire today, i.e, October 9, 2024. These contracts will be settled physically, and physical delivery margins will be applied to open positions in accordance with the exchange policy.As per the merger scheme, IDFC shareholders will receive 155 fully paid-up equity shares of IDFC First Bank Ltd for every 100 shares they hold in IDFC Ltd, based on the record date of October 10, 2024.IDFC Ltd, established in 1997, is a financial services company in India that began by providing infrastructure financing and later diversified into asset management, investment banking, and other financial services.
Shares of IDFC Ltd today ended at Rs 108 on the BSE, down by Rs 1.95 or 1.77% while IDFC Bank shares settled at Rs 72.50, down by 0.88%.
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