The National Company Law Tribunal (NCLT) Has Given Permission To Hold A Shareholders’ Meeting To Seek Approval For The Proposed Merger Of HDFC With HDFC Bank.

NCLT Has Given Permission To Hold A Shareholders’ Meeting To Seek Approval For The Proposed Merger Of HDFC With HDFC Bank

October 16, 2022: The National Company Law Tribunal (NCLT) has given permission to hold a shareholders’ meeting to seek approval for the proposed merger of HDFC with HDFC Bank.

A meeting of shareholders will be convened on November 25, 2022 for the purpose of considering and approving the plan of amalgamation, HDFC said in a regulatory filing on Friday.

HDFC Limited has also received approval from the Securities and Exchange Board of India (Sebi) to transfer HDFC Property Ventures Limited (HPV), a wholly-owned subsidiary, to HDFC Bank.

Touted as the biggest transaction in India’s corporate history, HDFC Bank on April 4 agreed to take over the largest domestic mortgage lender in a deal valued at around USD 40 billion, creating a financial services titan.

The deal has received in-principle approvals from stock exchanges, the Reserve Bank of India (RBI), SEBI, the Pension Fund Regulatory, and Development Authority (PFRDA), and the Competition Commission of India (CCI).

The proposed entity has approximately Rs. 18 lakh crore will be the combined assets. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals getting.

Once the deal is getting effective, HDFC Bank will be 100 percent owned by the public shareholders and HDFC’s existing shareholders will be able to own 41 percent of the bank onwards.

Each HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares. After the merger, the combined balance sheet as on December 2021 balance sheet stands at Rs. 17.87 lakh crore and a net worth of Rs. 3.3 lakh crore will be.

As of April 1, 2022, HDFC Bank has a market capitalization of Rs. 8.36 lakh crore (USD 110 billion) and HDFC’s Rs. 4.46 lakh crore (USD 59 billion).

After the merger, HDFC Bank will be twice the size of ICICI Bank, which is now the third largest lender.

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