The premium between IDFC and IDFC First Bank has been reducing almost everyday and currently stands at 31.5%. Depending on the holdco discount negotiated between the two boards(at a minimum I expect it to be 12-15% and on the higher end could be 22-24%), the premium could range between 28% to 42% as we head closer to the merger.
The premium reducing is actually great news for IDFC First Bank shareholders as it means that the bank could experience higher capital reduction and hence a higher book value and higher EPS post merger.
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