Every 100 shares of IDFC Ltd to get 155 shares of IDFC First Bank. Today’s closing CMP of IDFC Ltd is 109.9 and IDFC first bank is 81.7
Merger ratio seems favourable to IDFC Ltd holders as it implies price of 126.65 { 81.7*155/100}
Key point to note though is only few years ago, both these entities demerged only to merge back once again.
Interesting development overall. Would need to hear more from management to know the reason for this announcement.