Mumbai: HDFC Bank started rebranding offices of erstwhile HDFC Ltd with its colours on Saturday, on the first day of operations as a merged entity.
The $40-billion merger is the largest such deal in Indian corporate history and post-merger, HDFC Bank will become the fourth most valued lender in the world, and narrow the gap by asset size with state-owned SBI to be the second largest Indian bank.
HDFC Ltd, the parent of the country’s largest private sector lender, merged into HDFC Bank on Saturday, with boards of both the entities clearing the plan first presented on April 4 last year.
HDFC Ltd, the largest pure-play home financier, ceases to exist 44 years after it was founded.
Over 3,500 employees of HDFC Ltd have been integrated into HDFC Bank after the merger. The total business of the merged entity stood at Rs 41 lakh crore at the end of March 2023. With the merger, the networth of the entity would be over Rs 4.14 lakh crore.
The combined profit of both entities was to the tune of about Rs 60,000 crore at the end of March 2023. With the deal getting 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.
“Saturday, July 1, 2023, to be the ‘Effective Date’ of the composite scheme of amalgamation, on which date the certified order of the NCLT sanctioning the Scheme will be filed by HDFC Investments, HDFC Holdings, HDFC Limited and HDFC Bank with the RoC,” HDFC Bank said in a regulatory filing late on Friday.
The board of directors of HDFC Bank in consultation with the board of directors of HDFC Limited has fixed July 13, 2023, for determining the shareholders of HDFC Ltd who would be issued and allotted the shares of HDFC Bank, it added.
Besides, July 13 has been fixed for the continuation of warrants of HDFC Limited in the name of HDFC Bank.
The board has fixed July 12, 2023, for the transfer of non-convertible debentures while July 7 for the transfer of commercial papers of HDFC Ltd in the name of HDFC Bank.