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Shares of IDFC Bank gained over 5 per cent as RBI has cleared the merger with Capital First. The stock jumped as much as 5.1 per cent to Rs 40.30, in its biggest intraday percentage gain since January 11.
IDFC Bank had said in a BSE filing on Tuesday that it has received receipt of 'No Objection' from the Reserve Bank of India for the proposed amalgamation of Capital First Ltd, Capital First Home Finance Ltd and Capital First Securities Ltd with it.
Capital First, Warburg Pincus-backed non-banking financial company, and IDFC Bank, through this merger in an all-stock deal, are set to create a Rs 88,000-crore combined entity.
The share swap ratio for the merger is fixed at 139:10, meaning IDFC Bank will issue 139 shares for every 10 shares of Capital First.
Capital First Ltd climbed as much as 3.7 per cent to Rs 553.35, in its biggest intraday percentage rise since May 31.
More than 5.5 million IDFC Bank shares changed hands, compared with 30-day moving average of 15.5 million. As of Tuesday, IDFC Bank stock had fallen 29.3 per cent this year, while Capital First had declined 23 per cent.
(With inputs from Agencies)
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