HDFC-HDFC Bank merger was first announced in April last year
HDFC Bank on Friday confirmed that its merger with HDFC Ltd will come into effect from July 1, 2023. The announcement of merger’s completion came after the boards of the both the entities met on Friday. The record date, when shares of HDFC Bank will be allotted to HDFC shareholders, will be July 13.
The deal to merge mortgage lender HDFC Ltd with HDFC Bank was first announced in April 2022. Considered as the biggest corporate merger deal, it was valued at Rs 3.2 lakh crore.
Following the completion of the deal, HDFC Chairman Deepak Parekh retired today while corporation's CEO Keki Mistry and Managing Director Renu Karnad will join HDFC Bank’s board of directors. Appointment of both the officials was also confirmed by the bank in its board meeting today.
Commenting on the completion of the deal, Sashi Jagdishan, CEO and MD of HDFC Bank, said, "This is a defining event in our journey and I’m confident that our combined strength will enable us to create a holistic ecosystem of financial services. We’re truly happy to welcome the talented team of HDFC Ltd. into the HDFC Bank family. I believe our journey will be defined by agility, adaptability, and a relentless pursuit of excellence."
According to the terms of the deal, 42 shares of HDFC Bank will be allotted for every 25 shares of HDFC Ltd held by the shareholders. The bank informed that the transfer of non-convertible debentures of HDFC Limited in the name of HDFC Bank will take place on July 12 and the record date for allotting the shares will be July 13. Following the allotment of shares, HDFC Ltd will be delisted from the exchanges.
The merger is expected to create a financial services giant and the deal had to receive several approvals from relevant authorities, which included Reserve Bank Of India, Competition Commission of India, Securities And Exchange Board Of India and the stock exchanges.
The bank in its statement also confirmed that all the employees of HDFC Ltd will become employees of HDFC Bank on the effective date. "Over the past months, the Bank has been preparing for smooth integration not only of systems and processes, but also of all aspects that will make HDFC Bank a welcoming place of work for the employees from HDFC Ltd," the bank said.