IDFC Ltd shares to cease trading from October 10 on merger with IDFC First Bank

IDFC Ltd shares may be in the spotlight next week as trading will be suspended effective October 10 following the company’s amalgamation with IDFC First Bank, resulting in its dissolution without winding up.

“In pursuance of Regulation 3.1.2 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the following security will be suspended from trading w.e.f. October 10, 2024 (i.e., closing hours of trading on October 09, 2024),” said a circular by the National Stock Exchange (NSE).

As per the merger scheme, IDFC shareholders will receive 155 fully paid-up equity shares of IDFC First Bank Ltd for every 100 shares they hold in IDFC Ltd, based on the record date of October 10, 2024.

Following this development, the existing Futures & Options (F&O) contracts for IDFC Ltd set to expire in October, November, and December 2024, will now expire on October 9, 2024. These contracts will be settled physically, and physical delivery margins will be applied to open positions in accordance with the exchange policy.

It is also important to note that although the Marketwatch will continue to show the original expiry dates for these contracts, they will only be available for trading until the revised expiry date of October 9, 2024.

Also read: In a first, India’s forex kitty swells above $700-billion mark

IDFC Ltd, established in 1997, is a financial services company in India that began by providing infrastructure financing and later diversified into asset management, investment banking, and other financial services.

The shares of IDFC Ltd closed flat with a positive bias at Rs 109.35 on BSE on Friday while those of IDFC First Bank closed flat with a negative bias at Rs 71.86.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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