Mumbai: HDFC Bank has alloted nearly seven crore equity shares to the shareholders of Centurion Bank of Punjab (CBoP), pursuant to the banks’ decision to swap shares.
The bank alloted one share of HDFC for every 29 shares of Centurion Bank of Punjab (CBoP).
The allotment comes pursuant to the share swap decision approved by the board of HDFC Bank in February wherein the swap ratio was decided.
“The share allotment committee has alloted 6.98 crore shares of Rs10 each to shareholders CBoP for every 29 shares of Rs1,” HDFC Bank informed the Bombay Stock Exchange in a filing.
The record date for the share swap has been fixed as June 16, it said. Shares of the HDFC Bank was trading down by 0.1% at Rs1,096.50 on the BSE.
With the merger, the combined entity will have a nationwide network of 1,148 branches and the deposits would climb up to Rs1,20,000 crore.
At the same time, advances of the combined entity would touch Rs85,000 crore, while the balance-sheet size would swell to Rs1,50,000 crore.
In a bid to maintain the promoter’s holding at 23.2% in the merged entity, HDFC Bank made a preferential offer of about 2.62 crore convertible warrants to its promoter Housing Development Finance Corporation Ltd (HDFC).
HDFC has to pump in Rs4,000 crore to retain its holding in the bank. As per rules, 10% of this amount should be paid within 15 days after receiving the RBI approval for the merger.