If and when IDFCFB share price crosses 80, the equation would start changing and the arbitrage available now, will dissipate. It doesn’t look like that VV is in any hurry for the merger. In fact he should delay the issue of Tier 1 capital as much as possible to get a high price for shares to push up the book value as well as minimise the equity dilution. That would be in the long term interest of the bank.
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