Under the “Scheme of Arrangement” filing (on the BSE) on 3rd July 2023, IDFC First Bank stated:
In so far as the proposed utilisation of securities premium account to set off the accumulated losses as set out in Clause 32 of the Scheme is concerned, the book value of shares, IDFC FIRST Bank’s net worth, equity capital structure and shareholding pattern will all remain unchanged. Thus, this is balance sheet neutral action and will not result in reduction in the paid-up share capital of IDFC FIRST Bank. This shall also enable IDFC FIRST Bank to explore opportunities which benefit the shareholders (including dividend payout) (Emphasis mine).
It appears to me that during the interviews with V, no one asked him about the bank’s plans on the dividend front.
I don’t expect them to pay a dividend now. But perhaps they are going to start paying a dividend sooner than they otherwise would have. If this is true, then that’s some benefit for IDFC First Bank shareholders.
Depending on your cost of acquisition of shares, the dividend yield may or may not be a big deal. But in the end, it all adds up.
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