June 25, 2024

Housing Finance Development

It's Your Housing Finance Development

HDFC-HDFC Bank merger to be effective July 1, HDFC to be delisted July 13: Deepak Parekh

Housing Development Finance Corporation Ltd Chairman Deepak Parekh on Tuesday said the merger of the corporation with HDFC Bank Ltd will likely be effective July 1. The boards of HDFC Bank and HDFC will meet on June 30 post-market hours to clear and approve the merger, said Parekh and added that the merger received all the regulatory approvals.

“HDFC-HDFC Bank merger will be effective on July 1.The boards of HDFC and the private bank will meet on June 30 post to clear and approve the merger. It will be the last board meeting of HDFC,” Parekh told reporters in Mumbai.

HDFC stock delisting will be effective on July 13 and will start trading under HDFC Bank ticker, said Vice-Chairman and CEO Keki Mistry. HDFC shareholders will get their HDFC Bank shares in one to three days, said the housing finance firm’s top management.

“On July 13, HDFC Ltd stock will go off the bourses and shareholders will get their shares converted to HDFC Bank,” said Mistry.

Hours after the press conference, HDFC said in a stock exchange filing that the effective merger date and record date announced by the HDFC top management are ‘tentative’ and “subject to the completion of certain formalities”.

“Please note that the dates are tentative and are subject to completion of certain formalities including those which are beyond the control of HDFC Limited or HDFC Bank. Once the board of directors of HDFC Limited and HDFC Bank decide on the Effective Date of the Scheme as well as the Record Date, the same would be intimated to stock exchanges in accordance with applicable regulations,” said HDFC in a stock exchange filing.

Post-merger, Parekh will retire and Keki Mistry and HDFC MD Renu Karnad will be board members of HDFC Bank.

From July 1, all centres of HDFC Ltd will become HDFC Bank and smaller centres will also be used as service centres.

Termed as the biggest transaction in India’s corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan.

The proposed entity will have a combined asset base of around Rs 18 lakh crore.

Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.

Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

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