IDFC Ltd agrees to sell stake in securities biz: stock trades higher

The company has agreed to sell the entire stake of its subsidiary IDFC Securities to former CEO of Axis Capital Dharmesh Mehta and other undisclosed investors. It further stated that necessary definitive agreement is still to be signed among the parties involved.

IDFC and its subsidiary IDFC Financial Holding Company (FHCL) following their respective board meetings entered into an understanding with Dharmesh Mehta along with other investors. Following this, acquirers will purchase 100 percent equity stake of IDFC Securities from IDFC FHCL.

Earlier, on the financial front, the company reported a fall of almost 90 per cent in its net profit at Rs. 5.18 crore for Q1FY20 as compared to Rs. 51.21 crore for the same quarter last year. However, the total income of the company increased by 6.94 per cent at Rs. 133.04 crore for Q1FY20 as compared Rs. 124.41 crore for the corresponding quarter in the previous year.

IDFC is the country’s leading integrated infrastructure finance lender providing end to end infrastructure financing and project implementation services.

At 2:25 hours, the stock traded with gains of more than 3 per cent at Rs. 33.80 per share on BSE.