India's HDFC, HDFC Bank merger to be effective July 1 (updated)

Housing Development Finance

27/06/2023 14:54

(Changes sourcing in lead and headline, adds details from
exchange filing, background)
       BENGALURU, June 27 (Reuters) - Housing Development
Finance Corporation (HDFC)  HDFC.NS  and HDFC Bank  HDBK.NS  are
working towards completing the merger of the two financial
behemoths by July 1 and may set July 13 as the record date for
swapping shares, HDFC said in an exchange filing on Tuesday.
    HDFC Chairman Deepak Parekh had said in a CNBC-TV18 report
that both the boards will meet on June 30, which would also be
the last board meeting of HDFC, and its shares will go off
market effective July 13.
    However, these dates are tentative and will depend on the
completion of certain formalities, HDFC said in the filing. 
    Once the board of directors of HDFC and HDFC Bank finalizes
the effective date of the scheme as well as the record date, it
would be intimated to stock exchanges, it added. 
    HDFC had, in April last year, announced a $40 billion deal
to merge with HDFC Bank, the country's biggest ever, which will
create a financial services titan to better tap the rising
demand for credit.
    As per the deal, shareholders in HDFC will receive 42 shares
of the bank for every 25 shares held, giving them ownership of
41% in the lender.
    The merger has already been approved by the Reserve Bank of
India, National Company Law Tribunal, Pension Fund Regulatory
and Development Authority (PFRDA), Securities and Exchange Board
of India (SEBI), the Competition Commission of India and India's
stock exchanges.

 (Reporting by Manvi Pant in Bengaluru and Siddhi Nayak in
Mumbai; Editing by Savio D'Souza, Dhanya Ann Thoppil and Eileen
Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))