Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

NCLT Approves Merger of HDFC And HDFC Bank

On 4 April 2022, HDFC Bank agreed to take charge of HDFC in a deal worth USD 40 billion. The combined asset base is predicted to be around Rs 18 lakh crore

Photo Credit :

1659699548_0ailYj_images_7_.jpeg

The National Company Law Tribunal (NCLT) on Friday approved the merger of HDFC and HDFC Bank. The move has been deemed as the biggest merger in corporate history as HDFC is India's largest housing finance company, while HDFC Bank is known as the country's largest private lender. 

The approval letter has been provided by the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), PFRDA and Competition Commission of India (CCI) along with the Bombay Stock Exchange and National Stock Exchange.

The merger is expected to be completed by the second or third quarter of the fiscal year 2024.

NCLT has been permitted to hold a shareholders’ meeting to receive approval for the proposed merger. 

HDFC and HDFC Bank shares were trading over 1.7 per cent higher at Rs 2,575.95 and 1,578.20 apiece, respectively on Bombay Stock Exchange during late trading hours on Friday (17 March).

On 4 April 2022, HDFC Bank agreed to take charge of HDFC in a deal worth USD 40 billion. The combined asset base is predicted to be around Rs 18 lakh crore. 

The HDFC Bank will be 100 per cent owned by public shareholders while existing shareholders of HDFC will have 41 per cent of the total, once the deal is completed. 

Every HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares held.


Tags assigned to this article:
hdfc hdfc bank merger NCLT latest updates