Jobaaj Stories
The Stock exchange has finally given approval to the largest Institutional Organization, HDFC Bank And HDFC for their mega-merger.
The company has received the letter from both the stock exchanges, NSE and BSE, dated 2nd July, containing “no objection ” and “no adverse observations” respectively.
Both companies are yet to get approval from the Reserve Bank of India, Securities, and Exchange Board of India, the Insurance Regulatory and Development Authority of India (Irdai), the Competition Commission of India, and the National Company Law Tribunal (NCLT).
Lenskart raises a fresh round of funding, increases valuation by 80%, read more.
The merger, involving two arms of HDFC, got the approval of the board on April 4 after getting requisite approvals. The merger is to be done at USD 40 billion. The merger is to be completed in the F.Y 2023-24, where each shareholder will get 42 shares of HDFC Bank for 25 shares held in the HDFC.
The chairman of HDFC, Deepak Parekh said “The companies have made applications to various authorities such as the RBI, Sebi, Irdai, stock exchanges and the CCI, which are presently under consideration by the respective authorities and that there is a sequence of approvals required prior to the NCLT convening a meeting of shareholders for approving the merger.”
The business of the NBFC- HDFC and HDFC Bank will be conducted as usual in its normal course. HDFC Bank will be owned by both the public shareholders and by the owner HDFC holding 41% of the bank.
With the merger, the net worth of HDFC will be Rs 3.3 lakh crore, as of December 2021 and HDFC Bank will be twice the size of ICICI Bank.
As of April 1, 2022, the market capitalization of HDFC Bank was Rs 8.36 lakh crore, and that of HDFC is Rs 4.46 lakh crore.
-by Gautam
This news piece is brought to you in association with jobaaj.com
