HDFC - HDFC Bank merger to be effective July 1, says Deepak Parekh

The merger of housing finance major HDFC with the country's largest private lender HDFC Bank will be effective from July 1, said HDFC Chairman Deepak Parekh.

The boards of HDFC and HDFC Bank will meet on June 30 post-market hours to clear and approve the merger, Parekh told reporters on Tuesday.

Meanwhile, HDFC vice-chairman and CEO Keki Mistry informed that the delisting of the HDFC stock from exchanges will be effective from July 13.

Also Read: HDFC twins merger: What does HDFC-HDFC Bank merger mean for depositors and borrowers?

In April 2022, HDFC Bank announced to take over country's largest mortgage lender Housing Development Finance Corporation (HDFC) in a deal valued at about $40 billion. In the so called biggest transaction in India's corporate history, the merger will create a financial services titan, with the merged entity having a combined asset base of around ₹18 lakh crore.

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

As per the merger terms, every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

At 2:50 pm, the shares of HDFC Bank was trading 1.43% higher at ₹1,658.75 apiece, while HDFC shares were up 1.65% at ₹2,764.30 apiece on the BSE.

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