President of India (Govt) owns directly 4.61% in IDFCB and 16.4% of IDFC. If the two entities are merged then the Govt will own around 11% in the merged entity and not 23%. This ofcourse is excluding the AMC. The AMC is on track to delivery a Rs 200cr PAT in FY22 with a 75% ROE; comparable companies are trading at 35-40x in the market, if we take a 25x multiple for the AMC and a 20% acquisition premium then it works out to atleast 6000cr. The LTCG on this will be around 500cr and the Company will have 5,500cr free cash available for the merger.
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