The record date for the merger of IDFC First Bank and IDFC Ltd is October 10, hence NSE Indices will make the appropriate changes today during the final 30 minutes of trade. According to Nuvama Institutional Equities, IDFC First Bank's weight in the Nifty Bank index is likely to rise, while the weights of other participants will fall somewhat.

However, the influence on passive flows will be modest. IDFC First Bank is expected to receive $39 million in passive inflows after the corporate action. HDFC Bank Ltd is predicted to see $11 million in outflows, followed by ICICI Bank ($10 million), State Bank of India ($4 million), Kotak Mahindra Bank ($4 million), and Axis Bank ($4 million).

IndusInd Bank, Bank of Baroda, Federal Bank, AU SFB, and Canara Bank are all projected to have $1-2 million outflows.  According to the amalgamation design, IDFC Financial Holding Company would combine with IDFC Ltd, and the latter with IDFC First Bank.

On Tuesday, October 1, 2024, IDFC FHCL, IDFC Limited, and IDFC FIRST Bank submitted the certified decision of NCLT authorizing the scheme with the Registrar of Companies ("ROC"). 

The share exchange ratio for IDFC's merger into and with IDFC First Bank is 155 equity shares of face value Rs 10 each of IDFC First Bank for every 100 fully paid-up equity shares of face value Rs 10 each of IDFC, as of the record date, October 10.

The record date was determined in conjunction with IDFC First Bank, for determining the IDFC shareholders who would be allocated and distributed IDFC First Bank shares under the program.