New Delhi: HDFC Bank on Monday said the Monetary Authority of Singapore (MAS) has approved the merger of HDFC Investments and HDFC Holdings with parent HDFC Ltd.
As part of an overall scheme of amalgamation, Gruh Pte, a wholly owned subsidiary of HDFC Investments and an overseas step-down subsidiary of HDFC Ltd, received approval for merger with HDFC Bank. ,ALSO READ: EPFO e-passbook service down again,
The MAS vide its e-mail to Gruh Pte on April 24, 2023 gave its approval for acquisition of shares in Gruh Pte by HDFC Bank, as a result of which the bank will acquire 20 per cent or more of the issued share capital of Gruh Pte. , ,Also Read: SBI FD Vs Post Office Fixed Deposit: Which One Should You Choose?,
The proposed amalgamation is subject to receipt of final approval from the Securities and Exchange Board of India (SEBI) in respect of change in control of certain subsidiaries of HDFC Limited.
The approval will help pave the way for the merger of HDFC with HDFC Bank, which is expected to be completed by the third quarter of this financial year.
Called the biggest transaction in India’s corporate history, HDFC Bank on April 4 last year agreed to take over the largest home mortgage lender in a deal worth around USD 40 billion, thereby creating a financial services titan. Happened.
The proposed entity will have a combined asset base of about Rs 18 lakh crore.
Once the deal takes effect, HDFC Bank will be 100 per cent owned by public shareholders, and HDFC’s existing shareholders will own 41 per cent of the bank.
Every shareholder of HDFC will get 42 shares of HDFC Bank for every 25 shares held by him.