HDFC, HDFC Bank shares zoom 10% on merger announcement

HDFC, HDFC Bank shares zoom 10% on merger announcement

Shares of mortgage lender HDFC gained 10% to Rs 2696 today against the previous close of Rs 2450.95 on BSE.

Aseem Thapliyal
Aseem Thapliyal
  • Updated Apr 4, 2022 10:50 AM IST
HDFC, HDFC Bank shares zoom 10% on merger announcement HDFC Bank share climbed 9.99% to Rs 1656.90 against the previous close of Rs 1506.30 on BSE.

Shares of HDFC Bank and HDFC zoomed 10% each in early trade after the entities announced a scheme of merger today. HDFC Bank share climbed 9.99% to Rs 1656.90 against the previous close of Rs 1506.30 on BSE. Similarly, shares of mortgage lender HDFC gained 10% to Rs 2696 today against the previous close of Rs 2450.95 on BSE.

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"Shareholders of HDFC Limited as on the record date will receive 42 shares of HDFC Bank (each of face value of Re.1), for 25 shares held in HDFC Limited (each of face value of Rs.2), and the equity share(s) held by HDFC Limited in HDFC Bank will be extinguished as per the Scheme. As a result of this, upon the Scheme becoming effective, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC Limited will own 41% of HDFC Bank," the companies stated.

Also read: Bank Nifty climbs over 3% after HDFC, HDFC Bank announce merger

Pavitraa Shetty, co-founder & trainer, Tips2Trades said, "Despite strong fundamentals and consistent financial performances since the pandemic, HDFC group stocks haven't gone up much making them all the more attractive. This merger should bring about positive synergies, further consolidate leadership position in different segments including housing loans & credit cards, a strong re-rating and focus on internet banking augurs well for HDFC stock to begin its uptrend sooner than later. Technically, a close today above  Rs 1,600 could lead to  Rs 1,720 in the coming days. Investors are better off buying at levels closer to Rs 1,480- Rs 1,500 for better returns."

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Apr 4, 2022 9:32 AM IST
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