The merger of the corporation with HDFC Bank will be effective July 1, Parekh said.HDFC vice-chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective from July 13
Earlier, IRDAI had approved HDFC Ltd’s move to transfer its near 49% stake in its life insurance unit to HDFC Bank, clearing a key step ahead of their merger. The has also allowed HDFC Ltd to raise its stake in HDFC Life to more than 50%
Mumbai:
The merger of housing finance major HDFC with the country’s largest private lender HDFC Bank will be effective from July 1, HDFC Chairman Deepak Parekh said on Tuesday.
The boards of HDFC and the private bank will meet on June 30 post to clear and approve the merger, Parekh told reporters here.
The merger of the corporation with HDFC Bank will be effective July 1, Parekh said.HDFC vice-chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective from July 13.
Earlier, insurance regulator IRDAI had approved HDFC Ltd’s move to transfer its near 49% stake in its life insurance unit to HDFC Bank, clearing a key step ahead of their merger. The has also allowed HDFC Ltd to raise its stake in HDFC Life to more than 50%.
Post-merger, HDFC Bank will have a majority stake in the insurer, allowing the bank to show it as a subsidiary and consolidate its earnings.
Banking regulator Reserve Bank of India(RBI) had also allowed HDFC Bank/HDFC Ltd to increase shareholding in HDFC Life, HDFC ERGO to over 50 per cent,
Termed as the biggest transaction in India’s corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.
The proposed entity will have a combined asset base of around Rs 18 lakh crore.
Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.
Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.