HDFC twins merger: HDFC Bank shares update on trading of shares from Monday

Housing finance major HDFC has been merged with HDFC Bank. The merger has created the biggest private-sector lender in India. HDFC Bank is now ranked at the fourth position in terms of equity market capitalisation, only behind bigwigs like JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd., and Bank of America Corp. The total value of the merged entity is about $172 billion, according to data compiled by Bloomberg.  

The merger came into effect on July 1, but the bank has noted that the record date for the share swap between shareholders of these two biggies is scheduled on July 13, 2023. 

As per the merger terms and conditions, HDFC Bank will issue and allot to eligible shareholders 42 new equity shares for every 25 equity shares of HDFC as on July 13. 

HDFC Ltd, in its exchange filing, said: "...the window for trading in the securities of the Corporation would be closed with effect from Saturday, July 1, 2023, and shall continue to remain closed up to Record Date i.e. up to Thursday, July 13, 2023 (for determining the shareholders of the Corporation who shall be issued and allotted the shares of HDFC Bank), for all the employees, designated employees, and directors of the Corporation including their immediate relatives, in terms of the Sebi (Prohibition of Insider Trading) Regulations, 2015.”

As of June 30, HDFC Bank's market value was at Rs 9.51 lakh crore and HDFC's capitalisation stood at around Rs 5.22 lakh crore.  Together, the merged entity's market cap would be Rs 14.74 lakh crore, which is more than Tata Consultancy Services (TCS) with a market cap of Rs 12.07 lakh crore. Mukesh Ambani's Reliance Industries Limited will continue to be the largest firm in terms of a market cap of Rs 17.25 crore.

After the merger, the relative weight of HDFC Bank would be around 15 per cent in the current scenario, HDFC Bank contributes 9.23 per cent and HDFC contribute 6.16 per cent in Nifty, together they contribute 15.39 per cent in Nifty. This would supersede Reliance Industries as the most dominant Nifty stock.

Besides, after the merger, HDFC Securities, HDFC AMC, HDFC Ergo GIC, HDFC Capital Advisors, and HDFC Life Insurance would become one of the key subsidiaries of HDFC Bank.  

Also read: HDFC Bank initiates rebranding process of HDFC offices, branches after merger

Also read: HDFC twins merger: We could be creating a new HDFC Bank every 4 years, says CEO Sashidhar Jagdishan

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