It has been almost 3 months since an independent valuer for giving a fairness opinion on the swap ratio was appointed. Generally, it does not take this long to arrive at the swap ratio. To me it indicates that the 2 entities involved here are really negotiating hard for their respective shareholders.
Going by the recent trends in reverse mergers, a 14-15%(swap ratio of 140-142 for 100 shares of IdFC ltd) discount is a given in my view. IDFC First Bank could be asking for a higher discount of 17-18%((swap ratio of 135-136 for 100 shares of IdFC ltd).
Given RBI regulations, IDFC First bank has an upper hand in the negotiations in my view.
In my view, the ratio should be announced before the Q1 results.
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