HDFC-HDFC Bank merger: BSE, NSE give in-principle approval

HDFC on Tuesday informed that it has got in-principle approval from BSE and NSE for its merger with HDFC Bank. In an exchange filing, HDFC said: "BSE and NSE vide their letters dated December 13, 2022, granted their in-principle approval for the transfer of non-convertible debentures issued by HDFC Limited to HDFC Bank."

HDFC in an application dated December 5 had sought approval for the merger with HDFC Bank from BSE and NSE. 

Today, BSE in a letter to HDFC said that it "was pleased to grant its in-principle approval under Regulation 59 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015".

The exchange further said that it reserved its right to withdraw its approval at any later stage if the information submitted to it is found to be incomplete/ incorrect/ misleading/ false or any contravention of rules.

In April this year, HDFC Bank agreed to take over HDFC, the biggest domestic mortgage lender. Once merged, the new 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. 

In July, the proposed merger got no-objection certificates from BSE and NSE.

After the merger, HDFC Bank will be 100 per cent owned by public shareholders while existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.