IDFC Ltd to invest Rs 2,200 crore in IDFC First Bank, up its stake to 40%

IDFC Ltd said on Wednesday that it is investing Rs 2,200 crore in IDFC First Bank to increase its stake in the bank to 40 per cent from 36.38 per cent currently.

This is expected to provide growth capital for the bank, the company said in a statement.

Further, the IDFC board has declared a special interim dividend of Rs 11 per share, due to which the Government of India, the largest shareholder in IDFC, would receive a payout of Rs 287 crore.

IDFC Ltd and IDFC Financial Holding have begun the process of merger with IDFC First Bank.

The merger involves finalising the swap ratio, filing of the scheme and obtaining approvals from the stock exchanges, the Reserve Bank of India, and the Competition Commission of India, apart from approvals by shareholders, creditors and NCLT.