Proposed HDFC-Bank merger receives stock exchanges' clearance

Business Monday 04/July/2022 09:14 AM
Proposed HDFC-Bank merger receives stock exchanges' clearance

New Delhi: The proposed merger of HDFC Bank and its parent firm HDFC is another step closer to its amalgamation as the proposal has been accepted by stock exchanges National Stock Exchange and Bombay Stock Exchange, while noting that they have "no objection".

The stock exchanges have received the correspondence from the stock exchanges on Saturday, HDFC said in a regulatory filing. "In this regard, we would like to inform you that HDFC Limited has received observation letter with 'no adverse observations' from BSE Limited and observation letter with 'no objection' from the National Stock Exchange of India Limited, both dated July 2, 2022," the filing said.

However, the amalgamation scheme remains subject to various statutory and regulatory approvals, including approvals from the Competition Commission of India, Reserve Bank of India, the National Company Law Tribunal and the respective shareholders and creditors of the companies, the filing added

In early April, the country's largest private sector lender HDFC Bank announced that it will merge with mortgage lender Housing Development Finance Corporation (HDFC).

As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank.

On Friday, shares of HDFC Bank closed at Rs 1,355, up 0.5 per cent, whereas that of HDFC at Rs 2,205, up 1.6 per cent.