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Stock exchanges – BSE and NSE on Sunday approved an amalgamation scheme between HDFC and HDFC Bank, a regulatory filing of the largest private bank said.
HDFC Bank has received observation letter with ‘no adverse observations’ from BSE Limited and an observation letter with ‘no objection’ from the National Stock Exchange of India Limited, both dated July 2, 2022. The copies of said letters are enclosed herewith, the bank said in its filing to exchanges.
The Scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Reserve Bank of India, Competition Commission of India, the National Company Law Tribunal and the respective shareholders and creditors of the companies involved in the Scheme, as may be required, the bank also pointed further in its release.
On April 4, 2022, HDFC Bank agreed to take over the mortgage lender HDFC in a $40 billion deal, creating a financial services titan in the largest transaction in the nation’s corporate history.
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, the two firms said.
The merger is expected to be completed in about 15 to 18 months.
Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
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