HDFC merger: BSE, NSE approve transfer of NCDs from HDFC Ltd to HDFC Bank

The two stock exchanges have given their in-principle approval for the transfer of additional non-convertible debentures (NCDs) issued by HDFC Ltd to HDFC Bank on December 13, 2022.

Now, with regard to the change in control of certain subsidiaries of HDFC Ltd, the proposed amalgamation requires final approval from the Securities and Exchange Board of India (SEBI), the latter said.

Notably, the mega merger of HDFC Bank with HDFC Bank is expected to be finalized by the October-December quarter of the current financial year. A year ago in April, HDFC Bank had agreed to take over the largest home mortgage lender in a deal worth around $40 billion. This will lead to the rise of another financial services titan in the country.

Post merger, the entity will have a combined asset base of approx. 18 lakh crores. Post finalization of the deal, HDFC Bank will be owned 100 per cent by public shareholders and existing shareholders of HDFC will hold 41 per cent of the bank. Post merger, each HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.

A few days back, HDFC Bank received approval from the Monetary Authority of Singapore for the merger of HDFC Investments and HDFC Holdings with parent HDFC Ltd. Merger with HDFC Bank.

(With inputs from PTI)