HDFC Chairman Deepak Parekh on Tuesday said that the merger of the housing finance major with the country's largest private lender HDFC Bank will be effective from July 1. As per PTI, Parekh told reporters that the boards of HDFC and HDFC Bank will meet on June 30 to clear and approve the merger. Last April, the merger of HDFC Bank and Housing Development Finance Corporation (HDFC) was announced.
According to the proposed plan, HDFC will acquire a 41 per cent stake in HDFC Bank through this merger. As per the report, HDFC vice-chairman and CEO Keki Mistry said that the stock delisting of Housing Development Finance Corporation (HDFC) will be effective from July 13.
The merger has been described as the largest transaction in India's corporate history. The bank entered into an agreement to acquire the country's largest domestic mortgage lender in a deal valued at approximately $40 billion, establishing a formidable financial services powerhouse. The proposed merger will result in the creation of an entity with a combined asset base of approximately Rs 18 lakh crore.
As per the report, following the completion of the transaction, HDFC Bank will be fully owned by public shareholders, while existing HDFC shareholders will hold a 41 percent stake in the bank. As part of the deal, each HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares they currently hold.
HDFC Ltd has received approval letters from various regulatory bodies, including the Reserve Bank of India, the Securities and Exchange Board of India (SEBI), the Pension Fund Regulatory and Development Authority (PFRDA), the Competition Commission of India, as well as India's stock exchanges BSE and the National Stock Exchange.
Also Read: RBI Approves SBI Funds Management To Acquire Up To 9.99 Per Cent Stake In HDFC Bank
Last month, the Reserve Bank of India (RBI) gave its approval to SBI Funds Management (SBIFML) to acquire up to a 9.99 per cent stake in HDFC Bank.