India’s National Company Law Tribunal (NCLT) gave a green signal to the merger of HDFC and HDFC Bank on Friday, March 17. The merger between HDFC Bank and HDFC is expected to be completed by quarter 3 of FY24 and will become the largest merger in Indian corporate history.
The merger between the entities has already received initial approval letters from the Reserve Bank of India, Securities and Exchange Board of India, and Competition Commission of India as well as from stock exchanges, BSE and NSE.
HDFC Bank had announced its willingness to take over India’s biggest mortgage lender in the domestic market, HDFC. The deal would value HDFC at $40 billion. The combined asset base post the merger is estimated to be around 18 lakh crore.
Once the merger is completed, HDFC Bank will be 100 per cent owned by public shareholders and the existing shareholders of the HDFC will own 41 per cent of the bank as reported by Moneycontrol. Post the merger, 42 shares of HDFC bank will be given to every HDFC shareholder for 25 shares.
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