IDFC First Bank Merger APPROVED! Bank stock under Rs 80 a good BUY? Share price target 2024
idfc first bank merger approved! bank stock under rs 80 a good buy? share price target 2024
IDFC First Bank Share Price Target 2024: In a major update, shareholders of private lender IDFC First Bank on Friday gave their assent to the much-awaited merger with IDFC Ltd. The matter was approved with a big majority - 99.95 per cent - vote in favour, the lender informed in an exchange filing.
“We wish to inform that the resolution approving the Scheme was passed by overwhelming majority of 99.95% of the equity shareholders representing more than three-fourth in value of the equity shareholders of the Bank voting through remote e-voting and e-voting during the meeting,” the private lender said in a statement.
Shares of IDFC First Bank settled in the green at Rs 77.44 apiece on BSE. The bank stock has a 52-week range of Rs 100.74 and Rs 65.61. Now, that the merger has received the shareholder nod with majority, is it a good time to buy the shares of the bank?
IDFC Bank Share Price Target 2024
Being a relatively new entrant in banking, IDFC First Bank has made significant investments in building the business at an accelerated pace over the past 3-4 years, leading brokerage Motilal Oswal said in a research note. Further, IDFC First Bank has significantly improved its PSL compliance and has met all the requirements in FY24 vs regular shortfalls that it used to witness earlier.
Suggesting so, the brokerage added, "IDFC First Bank has been on track to deliver sustained improvement in earnings. We thus estimate IDFC First Bank to deliver a PPoP/PAT CAGR of 35%/30% over FY24-26E leading to an RoA/RoE of 1.3%/13.2%."
Motilal Oswal has, however, reiterated a Neutral rating for the stock with a target price of Rs 88.
IDFC First Bank Merger
The bank had last year in July announced the amalgamation of IDFC Ltd and IDFC Financial Holding Company with itself through a scheme of amalgamation. IDFC First Bank had informed that the shareholders of IDFC Ltd will get 155 shares of IDFC First Bank for every 100 shares held in the former.
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