Merger Between HDFC and HDFC Bank to Take Effect On July 1; HDFC Stock Delisting On July 13
On Tuesday, HDFC Chairman Deepak Parekh said that the company’s merger with the nation’s biggest private lender, HDFC Bank, would take effect on July 1. In order to clear and accept the merger, the boards of HDFC and the private bank will meet on June 30 following, Parekh informed reporters.
On July 1, according to Parekh, the company and HDFC Bank would combine.
Keki Mistry, vice-chairman and CEO of HDFC, said that the company’s shares would be delisted starting on July 13.
On April 4 of last year, HDFC Bank agreed to acquire the largest domestic mortgage lender in a deal valued at around USD 40 billion, establishing a financial services colossus in what was dubbed as the largest transaction in India’s corporate history.
The aggregate asset base of the proposed business would be close to Rs 18 lakh crore.
Once the agreement is in place, current HDFC shareholders will control 41% of the bank, making public shareholders the sole owners of HDFC Bank.
For every 25 HDFC shares a shareholder has, they will get 42 HDFC Bank shares.
