Merger of HDFC with HDFC Bank effective from July 1: HDFC chairman Deepak Parekh

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 market hours 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.

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.

Meanwhile, HDFC ltd's shares jumped 1.33% and was trading at Rs 2,756.60 at 3.30 pm on 27 June after the announcement was made. The shares of HDFC bank jumped 1.39% and traded at Rs 1,658.25.