HDFC Bank, India’s largest private sector lender, entered the exclusive global club of companies with a $100 billion market capitalisation following the listing of new shares of HDFC Bank issued to shareholders of parent company HDFC Ltd after the $40 billion reverse merger.
The bank is trading at a market value of around $151 billion, or Rs 12.38 lakh crore. HDFC Bank is now the world’s seventh largest lender, beating the likes of Morgan Stanley and Bank of China.
In terms of market cap, HDFC Bank is behind JP Morgan at $438 billion, Bank of America at $232 billion, the Industrial and Commercial Bank of China at $224 billion, the Agricultural Bank of China at $171 billion, Wells Fargo at $163 billion, and HSBC at $160 billion.
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After the merger, HDFC Bank’s market cap has surpassed that of major global investment firms like Morgan Stanley ($143 billion) and Goldman Sachs ($108 billion).
The $40 billion mega merger, in which HDFC Bank acquired the parent entity HDFC Ltd., came into effect on 1 July. On 17 July, the HDFC Bank stock started trading as a merged entity. Shares of HDFC Ltd were delisted from the stock exchanges on 13 July.
On 14 July, the bank allotted 3,11,03,96,492 new equity shares of face value of Rs 1 each, to eligible shareholders of HDFC Ltd under the all-stock merger deal where every HDFC shareholder received 42 shares of HDFC Bank for every 25 shares held in the company. The paid-up share capital of the lender rose to 753,75,69,464.
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At 1.00 pm, HDFC Bank shares were trading 0.68 per cent higher at Rs 1,655.55.
In terms of market value on the Bombay Stock Exchange (BSE), HDFC Bank has become the third-largest Indian company after Reliance Industries (Rs 18.6 lakh crore) and TCS (Rs 12.9 lakh crore).
