As of April 1, 2022, HDFC Bank had a market value of Rs 8.36 lakh crore (USD 110 billion) and that of HDFC was Rs 4.46 lakh crore ($59 billion). After the merger, HDFC Bank will be twice as big as ICICI Bank, which is now the third largest bank.
HDFC and HDFC bank ,HDFC BankThe path of merger is almost cleared. To merge the two companies, a no-objection certificate has been received from the stock exchange. After the merger of the two companies, this will be the biggest transaction in the corporate history of India. The stock exchange has issued a ‘no-objection’ certificate to HDFC and HDFC Bank. With this, the process of merging both the companies started. This merger was announced long ago, but many approvals are still pending. Now the stock exchange has taken this process forward.
Actually, before the merger or merger, the company has to get the observation letter from the stock exchange. It is written in this that what is the condition of that company or what is its credibility in the eyes of the stock exchange. BSE Limited has given a certificate of ‘No Adverse Observation’ to HDFC Bank. That is, nothing wrong has been found against him. With this, the National Stock Exchange has issued an observation letter of ‘No Objection’ to HDFC Bank. Both these certificates were issued on July 2, after which the way for the merger has been cleared.
Approval will have to be taken from here also
However, there are still many stages left through which HDFC and HDFC Bank will have to go through. Now approval will have to be taken at many stages, but the green signal of the stock exchange is important. After this the permission of Reserve Bank of India, Competition Commission of India, National Company Law Tribunal and shareholders of both the companies will be taken. After all this, both the companies will merge with each other, which will be the biggest transaction in India.
On April 4 this year, HDFC Bank announced the acquisition of the country’s largest housing finance company HDFC. A $40 billion deal has been signed between the two companies. After the merger, HDFC Bank will have assets worth Rs 18 lakh crore. It is believed that the merger of HDFC and HDFC Bank will be completed in the third or fourth quarter of FY 2024. The entire process of merger is subject to regulatory approval, which is currently underway. As soon as this deal is completed, 100% stake of HDFC Bank will go to the shareholders. HDFC will get ownership of 41 per cent stake in the bank.
What will be the benefit to the shareholder
After the deal, every HDFC shareholder will get 42 shares of HDFC Bank. In the observation letter of BSE, it has been said that HDFC Bank has been asked for details of every action of SEBI which has taken place against any of its companies earlier. If any action has been taken against the director, promoter and promoter group, then its information has also been sought. This detail has to be submitted to NCLT. HDFC Bank has been told that no changes will be made in the draft scheme of merger without the permission of SEBI. If any modification is to be done then written permission will have to be taken from SEBI.
how big will the business be
After the merger, according to the balance sheet of December 2021, the combined balance sheet of both the companies will be Rs 17.87 lakh crore and the net worth will be Rs 3.3 lakh crore. As of April 1, 2022, HDFC Bank had a market value of Rs 8.36 lakh crore (USD 110 billion) and that of HDFC was Rs 4.46 lakh crore ($59 billion). After the merger, HDFC Bank will be twice as big as ICICI Bank, which is now the third largest bank.