Shares of Housing Development Finance Corp Ltd and group's other listed stocks traded higher in late deals today after the finance provider's chairman Deepak Parekh said the merger of HDFC with HDFC Bank Ltd will be effective July 1. The boards of HDFC Bank and HDFC would meet on June 30 (post-market hours) to clear and approve the merger, Parekh added.
HDFC stock delisting would be happen on July 13 and it would start trading under HDFC Bank ticker, said HDFC 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," Mistry stated.
HDFC today rose 2.27 per cent to hit a day high of Rs 2,781 over its previous close of Rs 2,719.35. Shares of HDFC Bank Ltd and HDFC Asset Management Company (AMC) also climbed more than 2 per cent, each.
HDFC Life Insurance Company Ltd got the maximum boost as the stock surged 6.63 per cent to hit a day high of Rs 672.30. Last week, the Competition Commission of India (CCI) cleared acquisition of additional shareholding of HDFC Life by HDFC.
"We wish to inform that the CCI in its meeting held on June 20, 2023, has granted its approval to the proposed combination in terms of Section 31(1) of the Competition Act, 2002, for HDFC Limited to increase its stake in HDFC Life to more than 50 per cent," HDFC Life said.
From July 1, all centres of HDFC Ltd would become HDFC Bank and smaller centres would be used as service centres.
Termed as the biggest transaction in India's corporate history, HDFC Bank, on April 4 last year, agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan.
Once the deal is through, HDFC Bank would be 100 per cent owned by public shareholders and existing shareholders of HDFC will own 41 per cent of the bank.
Every HDFC shareholder would get 42 shares of HDFC Bank for every 25 shares they hold.
HDFC chairman Parekh also mentioned that all employees below the age of 60 have been transferred to HDFC Bank with no pay cuts and no golden handshakes.
The bank would continue with mortgage loans, he further said.
Meanwhile, Indian equity benchmarks settled with sharp gains today, led by strong buying interest in banks, financial, technology, metals and healthcare stocks.
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