HDFC twins merger: HDFC Bank, HDFC together the second largest company in India, beating TCS

• The HDFC Bank and HDFC merger could create the second largest company in India by market capitalisation, leaving behind TCS, the crowning jewel of the Tata group.
• At current prices, HDFC Bank and HDFC edge past TCS with the barest of margins.
• Reliance Industries remains the largest company by a huge margin, with its market cap standing at ₹18 lakh crore.

The HDFC twins’ merger has made the shareholders of HDFC Bank and HDFC richer by at least 10%, making the combined entity the second largest company in India by market capitalisation, beating out the Tata group’s crown jewel, TCS.

As of 11:15 a.m., on April 4, HDFC and HDFC Bank together had a combined market capitalisation of ₹14 lakh crore, while TCS’s market cap stood at ₹13.95 lakh crore.

It is worth noting that the HDFC Bank-HDFC merger has only been announced, the regulatory approvals could take up to 18 months to complete.

Shares of HDFC and HDFC Bank hit highs of 15% and 14% respectively earlier today, before the rally cooled off. As of 11:20 a.m., shares of the two companies were up 12% and 9%, respectively.

According to the scheme of the merger, shareholders of HDFC will receive shares in HDFC Bank – every 25 shares held in HDFC will fetch 42 shares in HDFC Bank. This is beneficial for HDFC shareholders according to the closing price on April 1.

How HDFC and HDFC Bank stack up

While HDFC is the largest player when it comes to housing finance, HDFC Bank is the largest private-sector bank in the country.


Source: Company reports

Reliance Industries maintains its healthy lead

Mukesh Ambani-led Reliance Industries remained the market leader by a huge margin, with a market capitalisation of ₹18 lakh crore – a staggering gap of ₹4 lakh crore between the current top two largest companies.

For context, this is more than the market cap of giants like Kotak Mahindra Bank, Bharti Airtel, Wipro, ITC, among others.

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