HDFC Bank, HDFC Ltd
Shares Jump Over 12%
on the News of Merger
Mortgage lender Housing Development Finance Corporation Ltd (HDFC) is going to merge with HDFC Bank, the largest private bank in India.
The news led the HDFC Bank shares to touch Rs 1721.55 at 10.10 AM in today's morning trade.
HDFC Ltd shares climbed to as high as Rs 2,837.35 at 10:30 am today.
HDFC Chairman Deepak Paresh addressed a press conference on the merger today where he announced the process will take 12-18 months because of numerous approval.
Post the merger, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC Limited will own 41 per cent of HDFC Bank.
As of today, HDFC Ltd, along with two of its wholly-owned subsidiaries, holds 21 per cent of the paid-up equity share capital of HDFC Bank.