IDFC First Bank shares plunge 6% post merger announcement

Shares of IDFC First Bank dropped by up to 6% following the announcement of a merger with parent company IDFC. The share swap deal appeared to favor IDFC, leading to a higher stock price for IDFC and a lower price for IDFC First Bank. Nuvama Institutional Equities recommended entering into a spread trade at an adequate level, which is unlikely to occur. The merger is subject to regulatory approvals and is expected to take 12 to 15 months to complete.