India's HDFC Bank to replace HDFC Ltd on MSCI indexes (updated)

Housing Development Finance

07/07/2023 14:57

(Adds details on merger, background on MSCI move)
       BENGALURU, July 7 (Reuters) - India's biggest private
lender HDFC Bank  HDBK.NS  will replace Housing Development
Finance Corp (HDFC) Ltd  HDFC.NS  on MSCI Global Standard
indexes from July 13, following the merger of two companies, an
MSCI notice showed on Friday.
    HDFC and HDFC Bank completed their $40 billion merger, the
largest in India's corporate history on July 1 and have set July
13 as the "record date" for shareholders to swap HDFC's shares
with those of HDFC Bank.
    Reuters had reported in June that after the merger, the
foreign shareholding in the combined entity would be at about
60%-62%, allowing the bank to be added to the MSCI index for the
first time since 2013.
    The share price of both companies slid in May after MSCI
said that it would use an adjustment factor of 0.50 to compute
the weightage of the merged entity, which Nuvama Research
estimated would likely lead to a combined outflow of $150-$200
million.
    Still, HDFC Bank's shares are up 2% so far this year, while
HDFC's shares have gained 5%, but are both underperforming the
blue-chip Nifty 50  .NSEI , which is up 6.8%.

 (Reporting by Manvi Pant in Bengaluru; Editing by Savio
D'Souza)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))