HDFC-HDFC Bank merger gets NCLT clearance
Business Insider India
- Earlier, the merger was approved in-principle by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Competition Commission of India (CCI).
- Valued at nearly $40 billion, this merger is the largest in India’s corporate history and will create a financial services behemoth with an asset base of nearly ₹18 lakh crore.
- The merger is expected to be completed by the second or third quarter of FY24.
AdvertisementThe National Company Law Tribunal (NCLT) on Friday approved the merger of
The merger had earlier received approvals from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and the Pension Fund Regulatory and Development Authority (PFRDA). Shareholders of both the entities approved the merger in February this year.
Announced in April last year, the HDFC-HDFC Bank merger is the largest in India’s corporate history, with the deal valued at nearly $40 billion. The merged entity will have a combined asset base of nearly ₹18 lakh crore.
While HDFC is the largest housing finance company in the country, HDFC Bank is the largest private-sector lender.
Under the deal, HDFC will merge into HDFC Bank and the public shareholders of HDFC Bank will become 100% shareholders of HDFC. Existing shareholders of HDFC will get shares in HDFC Bank – every 25 shares held in HDFC will fetch 42 shares of HDFC Bank.
HDFC Bank’s shares ended 1.7% higher on Friday at ₹1,579 a piece, while HDFC shares gained 1.3% to close at ₹2,564.
“The proposed transaction ticks all the right boxes in terms of completion of product offerings, product leadership in home loans as with other retail assets products, distribution strength across the country and a customer base that can be leveraged to cross-sell a complete suite of financial products,” HDFC Bank’s chief executive officer Sashidhar Jagdishan had said at the time.
The merger is expected to be completed by the second or third quarter of FY24.
TCS is an integral part of who I am, I’ll be a part of TCS too as it soars: Rajesh Gopinathan
Reliance shares down 22% from all-time high: Attractive entry opportunity, says JP Morgan
Time to move on from CEO extension debate for IndusInd Bank and focus on the fundamentals
Popular on BI
- Top 10 must-visit destinations in South Africa
- Indian markets continue record run, Sensex scales 69K peak as power, bank shares advance
- Stock markets continue record run, Sensex scales 69K peak as power, bank shares advance
- Icy pebbles may be carrying water to developing planets across the cosmos!
- With $500 billion in reserves, LIC is the world’s fourth largest insurer