India’s HDFC, HDFC Bank merger effective from July 1

Housing Development Finance Corporation (HDFC) and HDFC Bank are diligently working towards the culmination of their merger, aiming to finalize the union of these financial powerhouses by July 1. As per the exchange filing, July 13 is being considered as the potential record date for the share swap, subject to the completion of necessary formalities. The final board meeting of HDFC, scheduled for June 30, will also mark the removal of its shares from the market, effective July 13. However, these dates remain tentative and contingent upon the fulfilment of procedural requirements, as highlighted in the filing.

Once the respective boards of HDFC and HDFC Bank determine the effective date and record date of the merger scheme, the stock exchanges will be duly notified. The proposed merger, announced in April last year, will create a formidable financial services titan well-positioned to tap into the burgeoning credit demand. Upon completion, HDFC Bank will be entirely owned by public shareholders, while HDFC shareholders will receive 42 shares of the bank for every 25 shares held, granting them a significant 41 percent stake in the lender. This transformative combination is set to establish the merged entity as the world's 10th largest bank, boasting an estimated market capitalization of $145 billion, as projected by a Goldman Sachs note.

The merger has already secured approvals from key regulatory authorities, including the Reserve Bank of India, the National Company Law Tribunal, the Pension Fund Regulatory and Development Authority, the Securities and Exchange Board of India, the Competition Commission of India, and the country's stock exchanges. The Mumbai bench of the tribunal endorsed the merger scheme through its order on March 17, 2023, giving it the green light.

HDFC, with a market capitalization of over Rs 9.3 trillion, operates across various sectors, including banking, asset management, venture capital, and insurance, through its associate and subsidiary companies. Founded and incorporated in August 1994, the bank began its operations as a scheduled commercial bank in January 1995, subsequently listing on the Indian stock exchanges that same year.

In 2000, HDFC Asset Management Company launched its mutual fund schemes, and the Insurance Regulatory and Development Authority registered HDFC Standard Life Insurance, now called HDFC Life, as India's first private-sector life insurance company. Furthermore, HDFC collaborates with Munich-based Ergo Group for its general insurance operations.

Next (ITAT excludes taxing flat agreement prices and stamp duty difference)

India’s HDFC, HDFC Bank merger effective from July 1

This Month

Overview

Explore

Join Us