IDFC stock surges 17% to hit new 52-week high after getting RBI nod to exit IDFC First Bank

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IDFC share price surged over 17 percent in the morning session on July 22 after the RBI allowed the company to exit as the promoter of IDFC First Bank.

IDFC Limited said on July 21 it can now exit as the promoter of IDFC First Bank as the five-year lock-in period had ended.

“We would like to inform you that the Reserve Bank of India (“RBI”) has, vide its letter No. DOR..HOL.No.SUO?75590/16.01.146/2021?22 dated July 20, 2021, clarified that after the expiry of lock?in period of 5 years, IDFC Limited can exit as the promoter of IDFC FIRST Bank Limited,” said the company in a communication to stock exchanges.

IDFC holds a 36.56 percent stake in the bank that commenced operations in October 2015, which means it completed five years last year.

According to RBI rules, the shareholding of the non-operative financial holding company, which is the promoter of the bank, should be a minimum of 40 percent of the paid-up voting equity capital of the bank, which will be locked in for five years from the date of commencement of the business of the bank.

IDFC Bank and Bandhan Bank got the licence in 2014. In 2018, IDFC Bank Ltd and Capital First Ltd announced the completion of a merger to become IDFC First Bank.

IDFC share was trading at Rs 61.60, up Rs 8.85, or 16.78 percent. It has touched a 52-week high of Rs 62.60. It has touched an intraday high of Rs 62.60 and an intraday low of Rs 58.40.

The stock also witnessed a spurt in volume by more than 1.44 times and was trading with volumes of 1,055,848 shares, compared to its five-day average of 324,179 shares, an increase of 225.70 percent.

The IDFC First Bank stock was trading at Rs 52.70, up Rs 1.50, or 2.93 percent. It touched an intraday high of Rs 52.75 and an intraday low of Rs 51.15.

News Source:- Moneycontrol

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