IDBI, IDBI Bank share swap ratio at 100 : 142
By Mumbai: | 21 Jan 2005
Mumbai: The shareholders of IDBI Bank will get 100 shares of IDBI for every 142 shares held by them. The boards of IDBI and IDBI Bank approved the share swap ratio for the merger on Thursday.
IDBI will transfer 2.5 per cent of its shareholding in IDBI Bank to a trust in order to give value to IDBI's shareholders, said M Damodaran, chairman, IDBI.
IDBI will extinguish the balance shares held by it in IDBI Bank. The central government holding in the merged entity will be at 51.4 per cent, he told reporters, on the sidelines of the board meetings here.
IDBI's holding in the bank at the end of December 2004 quarter was 55.33 per cent, while SIDBI held 13.83 per cent. The amalgamation will be with retrospective effect from October 1, 2004, and the process is expected to be completed by March 31, 2005. "We need to recast the balance sheet of IDBI for the six-month period," Damodaran said.
