M R Rao, currently the MD and CEO of Bharat Financial, will become the MD and CEO of IFIL
IndusInd Bank and Bharat Financial Inclusion shares gained more than 2 percent each on June 20 after both companies board members fixed July 4 as the record date for merger.
“All assets and liabilities of Bharat Financial shall become assets and liabilities of the Bank with effect from the appointed date, being January 1, 2018. Simultaneously with amalgamation, the business correspondent undertaking of Bharat Financial shall be transferred to IFIL, a wholly-owned subsidiary of the Bank. All assets and liabilities originated by IFIL will be booked in the balance sheet of the Bank,” IndusInd said in its BSE filing.
The Bank further said both board members fixed July 4, 2019 as the effective date of the scheme, on which date the NCLT Order will be filed by the bank, Bharat Financial and IFIL with Registrar of Companies.
July 4 will also be the record date, following the effectiveness of the scheme, for determining the shareholders of Bharat Financial who shall be entitled to receive shares of the bank, as consideration pursuant to the scheme, it added.
The board of directors have decided to publish consolidated financial results for the quarter ending June 2019 on July 12.
As per the scheme, the Bank will issue and allot its 639 shares to shareholders of Bharat Financial on the record date against every 1,000 shares held by them in Bharat Financial.
“The scheme also contemplates a preferential allotment of share warrants to the promoters of the bank. Each share warrant, upon exercise, shall entitle the promoters to one equity share. The share warrants shall be issued to the promoters of the bank at Rs 1,709 per warrant,” IndusInd Bank said.
M R Rao, currently the MD and CEO of Bharat Financial, will become the MD and CEO of IFIL.
Bharat Financial Inclusion was quoting at Rs 888.65, up 2.48 percent and IndusInd Bank was up 2.09 percent at Rs 1,411.75 on the BSE at 1013 hours IST.