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India’s HDFC Bank to Merge With Mortgage Lender HDFC

Shares of HDFC Ltd and HDFC Bank were up 7% and 6.4%, respectively, after the announcement


HDFC Bank
Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company. Photo: Reuters.

 

India’s largest private lender HDFC Bank will merge with housing finance firm HDFC Ltd, the companies said on Monday.

Shares of HDFC Ltd and HDFC Bank were up 7% and 6.4%, respectively, after the companies decided to merge. The Nifty bank index rose 2.3%, while the finance index gained 3.1%.

As part of the deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41% of HDFC Bank.

Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company.

The subsidiaries and associates of HDFC Ltd will shift to HDFC Bank, the companies said in a regulatory filing.

 

  • Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.