HDFC shares: Last day of trading, F&O settlement, passive flows, merger details & more

Wednesday is the last day of trading for Housing Development Finance Corporation (HDFC) shares on stock exchanges and all futures & options (F&O) contracts on the underlying HDFC would cease to exist pursuant to the final physical settlement today.

"All existing monthly and weekly contracts in the underlying HDFC contracts with expiry dates post July 12, shall expire on July 12. The settlement price to be reckoned for the purpose of final settlement shall be settlement price of security HDFC in the capital Market segment, on July 12, 2023," said NSE in a press release this week.

Thursday would be the record date for the merger, meaning those investors who would be holding HDFC shares on the day would be eligible for the allotment of HDFC Bank shares. 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 they hold.

LTMindtree would replace HDFC in Nifty while JSW Steel will replace the HFC stock in Sensex. Nifty Next 50 will see addition of Jindal Steel and migration of LTIMindtree. In the case of Sensex, JSW Steel will replace HDFC.

With HDFC shares getting converted into HDFC Bank, the latter would become the most heavyweight stock on Nifty with about 14.43 per cent weight. The merger would lead to cut in weightages of Reliance Industries (to 10.8 per cent from 10.9 per cent), ICICI Bank (7.7 per cent from 7.8 per cent) and Infosys (5.5 per cent from 5.6 per cent), as per Abhilash Pagaria of Nuvama Institutional Equities.

"On account of HDFC Twin merger, key domestic indices will see some churning on July 12," Pagaria said in a note on Monday.

Major flow impact are seen in Nifty Bank as HDFC Bank will see upward revision in weight to 29 per cent (weight is capped) from 27 per cent (currently). Alongside weight reduction will be seen in ICICI Bank , State Bank of India, Kotak Bank and Axis Bank.

Post-merger, HDFC Bank would become the fourth most valued lender in the world, and narrowed the gap by asset size with state-owned SBI to be the second largest Indian bank.

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