New Delhi: Housing Development Finance Corporation Ltd Chairman Deepak Parekh on Tuesday spoke on the merger of the Finance Corporation with HDFC Bank Ltd which will be coming into effect from July 1. The boards of HDFC and HDFC Bank are to have a meeting after the market hours to discuss matters on the merger, stated Parekh, informing about the merger receiving all the regulatory approvals.
“HDFC-HDFC Bank merger will be effective on July 1. Both companies are having separate board meetings on June 30 after office hours. It will be the last board meeting of HDFC,” told Parekh.
Delisting of the HDFC shares to be effective from July 13 and will begin to trade under the HDFC Bank ticker, stated Vice-Chairman and CEO, Keki Mistry.
“On July 13, HDFC Ltd stock will go off the bourses and shareholders will get their shares converted to HDFC Bank,” said Mistry.
Post this merger, the newly merged entity will be seen as daunting in the Indian banking industry, as then HDFC Bank will 100 per cent be owned by the public shareholders and existing HDFC shareholders will be owning a 41 per cent stake in the bank.
Meanwhile, HDFC in its exchange filing said, “The proposed transaction would create meaningful value for various stakeholders including respective shareholders, customers, employees, as the combined business would benefit from increased scale, comprehensive product offering, balance sheet resiliency, and the ability to drive synergies across revenue opportunities.”
