By Aditya Raghunath
Investing.com -- Shares of IDFC Ltd (NS: IDFC ) 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: IDFB ) 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: CAPF ) 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 Bank Nifty since June 2021.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.