Stock Holding Corporation to merge with IDBI Bank

Stock Holding Corporation of India Ltd SHCIL is merging with IDBI Bank Ltd. The board of directors of IDBI Bank has approved the merger proposal,subject to regulatory and shareholder approvals as may be required. The merger will be effected through a non-cash share swap deal.

Leading merchant bankers,chartered accountants and valuers are being appointed for undertaking due diligence and valuation of SHCIL for arriving at the swap ratio for the merger,after which,a scheme of amalgamation would be prepared and the process of obtaining requisite approvals from regulatory authorities would be set in motion. The entire process of merger is expected to be completed by March 31,2013, IDBI Bank said.

SHCIL was established in 1986 and was promoted by IDBI,along with six other public financial and investment institutions of the country.

The company provides custodial services for financial intermediaries mutual funds,FIIs,depository services for retail investors,e-stamping,distribution of FDs and bonds etc. to institutional investors,banks,mutual funds and retail investors. While document management services and insurance repository services are provided through

its subsidiary,SHCIL Projects,broking services and equity derivatives clearing services are provided through

another subsidiary,SHCIL Services Ltd.