Business

IDFC up 3% on shareholders nod to demerger

Shares of IDFC were trading higher by 3% at Rs 178 on the National Stock Exchange (NSE) after the company said it has got the shareholders approval for the demerger of its financial undertaking into IDFC Bank.

“The Court Convened meeting of the equity shareholders of IDFC was held on April 9, 2015 as per the order of the Hon’ble High Court of Madras, in which the equity shareholders have unanimously approved the Scheme of Arrangement among IDFC Limited and IDFC Bank Limited and their respective shareholders and creditors,” IDFC said in a filing.

With this approval most of IDFC to IDFC Bank conversion process will be completed.

In October last year, the IDFC board had approved a proposal to demerge its financial undertaking into its wholly-owned step-down subsidiary IDFC Bank.

Each IDFC shareholder will get 1 share of IDFC Bank as a consideration for the demerger of financing undertaking of IDFC into IDFC Bank, to the shareholders holding shares of IDFC as on the record date.

The stock opened at Rs 175 and touched a high of Rs 179 on the NSE. The counter has seen huge trading activity with a combined 3.68 million shares changed hands till 0946 hours, against an average around 6 million shares that were traded daily in past two weeks on the NSE and BSE.