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The Housing Development Finance Corp and HDFC Bank are expected to combine for $40 billion by the end of the month. The merger of the Housing Development Finance Corporation (HDFC) and HDFC Bank will go into effect on 1st July, according to HDFC Chairman Deepak Parekh.
After the State Bank of India (SBI), the nation's largest lender, merging the HDFC twins would produce India's second-largest financial institution by assets. The delisting of the company's stock will take effect on July 13 according to HDFC's vice-chairman and CEO Keki Mistry.
According to Parekh, the boards of HDFC Bank and HDFC will convene on June 30 following market hours to discuss and approve the merger.
After the same announcement, the shares of HDFC jumped and were trading at Rs 2,760, while HDFC Bank shares were trading at Rs 1,656.40 on BSE. Moving on both shares saw a percentage increase of 1.50% and 1.30% respectively.
As per the Indian Express, the merger is valued at around $400 billion. Following the merger, the proposed business would have a combined asset base of roughly Rs 18 lakh crore. After the merger, HDFC Bank will be 100% held by public shareholders, with current mortgage lender stockholders owning 41% of the private lender.
Further, it was even stated that for every 25 HDFC shares held, each shareholder will receive 42 HDFC Bank shares.
- Charu Kapoor
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