Deepak Parekh, the chairman of HDFC, announced on Tuesday that the company’s merger with the largest private lender in the nation, HDFC Bank, will take effect on July 1.
The boards of HDFC and HDFC Bank will meet on June 30 to clear and approve the merger, according to PTI, which Parekh said to reporters. HDFC Bank and Housing Development Finance Corporation (HDFC) announced their merger in April of last year.
The proposed plan states that with this merger, HDFC will acquire a 41% interest in HDFC Bank.
The stock delisting of Housing Development Finance Corporation (HDFC) would take effect on July 13 according to the report from HDFC Vice-Chairman and CEO Keki Mistry.
The merger has been referred to be the biggest business deal in the history of India. In a deal estimated to be worth $40 billion, the bank agreed to buy the biggest domestic mortgage lender in the nation, creating a formidable financial services giant. With the proposed merger, a new company with a combined asset base of roughly Rs 18 lakh crore will be formed.
According to the report, existing HDFC shareholders will maintain a 41 percent ownership in the bank after the sale is complete, making public shareholders the sole owners of HDFC Bank. Each HDFC shareholder will receive 42 shares of HDFC Bank for every 25 shares they presently own as part of the agreement.
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