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.

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The news led the HDFC Bank shares to touch Rs 1721.55 at 10.10 AM in today's morning trade.

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HDFC Ltd shares climbed to as high as Rs 2,837.35 at 10:30 am today.

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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.

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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.

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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.

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