The decks are cleared for the mega merger of HDFC and HDFC Bank to go ahead. The merger has been approved by the National Company Law Tribunal (NCLT).
The merger has already received in-principal approval from regulators including RBI, SEBI, insurance regulator IRDAI as well as shareholders and competitions commission of India. Both the stock exchanges have also given an NOC for the deal.
The deal, deemed the biggest merger in India's corporate history, was announced on April 4, 2022. The deal valued at around $40 billion will lead to the creation of a banking behemoth. The combined entity will have a combined asset base of around 18 lakh crore.
Post the merger, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will own 41% of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
Shares of both HDFC bank and HDFC closed the day about 1.7% higher.