IMHO, most of the benefits mentioned here do not accrue in the IDFC-IDFC First Bank amalgamation (they do hold in case of the HDFC-HDFC Bank merger, though).
IDFC FB will not have access to a larger customer base and wider distribution network, simply because IDFC Limited is a holdco with no operating businesses (after the sale of the AMC), and hence brings no new customers or distribution network for IDFC FB to gain from.
As regards cost synergies and op efficiencies, again none for Bank, so no improved profitability or improved stock performance on this count. Thought, IDFC Ltd shareholders will gain as the costs at the Corporate level will get extinguished.
Lastly, no benefits of increased scale and diversified businesses to help improve the bank’s resilience, as there are none.
That said, it does help stability in the sense that there will now be no entity with a large ownership of the Bank, and the shareholding will be 100% public, a la HDFC Bank/ ICICI Bank. In addition to this, another benefit for the Bank is the increase in BVPS by 5% (due to the cash of approx INR 600 cr and the 1.55 swap instead of the 1.65 that IDFC shareholders held in the Bank through IDFC-IDFCFHCL structure).
Prima facie, It appears to be a win-win, even if not fully fair to IDFC Ltd shareholders. IDFC Ltd shareholders get most of the value unlocking by collapse of the holding company structure, and the Bank shareholders get to capture a part of the value so created.
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