HDFC AMC gets SEBI's final approval for change in control due to merger
1 min read 24 May 2023, 06:22 PM ISTThis approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of the next financial year.
PremiumHDFC Asset Management Company (AMC) on May 24 announced that it had received the final approval from capital market regulator SEBI for a change in control due to the HDFC-HDFC Bank merger. This is subject to compliance with the applicable provisions of PMS regulations, and circulars thereto, according to a regulatory filing by HDFC AMC to the stock exchanges.
This approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of the next financial year. Last month, stock exchanges BSE and NSE approved the the transfer of non-convertible debentures (NCDs) from the mortgage firm to HDFC.
Also Read: Sebi approves transfer of controlling stake of HDFC AMC to HDFC Bank
The two stock exchanes granted their in-principle approval for the transfer of additional non-convertible debentures (NCD) issued by HDFC Limited post receipt of the earlier approval on December 13, 2022, to HDFC Bank.
Considered 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. The proposed entity will have a combined asset base of around ₹18 lakh crore.
After the finalisation of the deal, HDFC Bank will be owned by 100 per cent public shareholders and existing shareholders of HDFC will own 41 per cent of the bank. After the merger, every HDFC shareholder wiill get 42 shares of HDFC Bank for every 25 shares they own.
HDFC Ltd posted a 20 per cent year-on-year growth in standalone net profit in the March quarter to ₹4,425 crore, on the back of higher income. The company’s total operating revenue surged 36 per cent from a year ago to ₹16,679 crore. An interim dividend of ₹44 per share for FY23 has been approved by the company's board.
On May 24, shares of HDFC AMC settled 1.36 per cent lower at ₹1,742.90 apiece on the BSE.
