India’s most important moneylender HDFC Bank on Monday consented to assume control over the country’s biggest home loan moneylender in a USD 40 billion deal, making a financial services titan in the biggest transaction in the country’s corporate history.
When the arrangement is compelling, HDFC Bank will be 100% owned by public shareholders, and existing shareholders of HDFC will claim 41% of the bank, the two firms said.
Each HDFC investor will get 42 shares of HDFC Bank for every 25 shares held.
The proposed substance will have a consolidated resource base of around Rs 18 lakh crore. The consolidation is supposed to be finished by the second or third quarter of FY24, dependent upon administrative approvals.
Making the declaration, HDFC Chairman Deepak Parekh said it is a ‘merger of equals’, which will likewise help the economy as a bigger balance sheet and capital base will permit a more noteworthy progression of credit into various sectors.
The transaction includes the mixture of HDFC and its two entirely owned subsidiaries HDFC Holdings and HDFC Investments with HDFC Bank.
“The merger is a coming together of equals. Our customers will be the biggest beneficiaries,” Parekh told reporters.