By Aditya Raghunath
Investing.com — Shares of IDFC Ltd (NS:) soared to its 52-week high of Rs 62.9 today, up 17%, before dropping to 13% at Rs 59.65 as of this report today. The reason behind the surge was the RBI’s decision that said IDFC could now exit as the promoter of IDFC First Bank Ltd (NS:) as the five-year lock-in period has 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 to stock exchanges.
IDFC holds a 36.56% stake in the bank that was started in October 2015 which means it completed 5 years in 2020. In 2018, IDFC Bank and Capital First (NS:) merged to become IDFC First Bank. The bank has lost over 9% in the last 30 days, falling from Rs 58.1 on June 22 to Rs 52.8 as of this report.
IDFC First Bank had hit a peak of Rs 68.2 in March this year but has steadily been falling since then. The bank has been an underperformer to since June 2021.