Thread by @TheKenWeb

Since it demerged from IDFC Bank in 2015, IDFC’s stocks have fallen by 8%. In contrast, the bellwether BSE Sensex has more than doubled in this period. IDFC's market value is $1.2 billion-half the combined worth of its 36% holding in IDFC First Bank and 100% stake in IDFC AMC
1/6

The company could unlock value by selling off its AMC and reverse merging with IDFC First Bank. However, angry and tired investors, accuse IDFC of dragging its feet on the matter and even booted chairman Vinod Rai in September.
2/6

In a scramble since then, IDFC has appointed Citigroup to sell its mutual fund business and wrote to IDFC First Bank regarding a reverse merger. But IDFC First has put the ball back into IDFC’s court, seeking guidance on the next steps—a communication IDFC has not made public
3/6

The value unlocking could be a long-drawn, three-act play with many ifs and buts. IDFC’s increasingly irate and impatient shareholders now face some unenviable choices, even if suboptimal writes @anandg_kalyang Kalyanram in today's insightful story:

4/6
the-ken.com/story/idfcs-va…

IDFC Bank, spun out of IDFC in 2015, merged with non-bank lender Capital First in 2018 to form IDFC First Bank. From an infrastructure lending-focused bank, it has pivoted towards retail lending, a strategic shift that seems to be paying off.

5/6

ICYMI, in our September story, Kaushal Shroff wrote about how IDFC First bank under MD and CEO V Vaidyanathan, who had pulled off a successful retail lending strategy at Captial First, was trying to emulate the same at IDFC First Bank.
6/6
the-ken.com/story/idfc-fir…