Assuming the current price of IDFC which is 111
Buying 1 share of IDFC simply means buying IDFC FB at 111/1.55 = 71.
Also, the no. of shares that’ll get added due to swap will be ~248cr (1.55 times the current ~160 cr IDFC shares)
The no. of shares that’ll vanish is ~265 cr (Current IDFC holding in IDFCFB) thereby net vanishing of 17cr shares. So effectively this’ll impact the book value and EPS of IDFCFB positively
Disc: Invested in both. No recommendation.
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