HDFC will merge with HDFC Bank to create India’s third-biggest financial entity in terms of market capitalization.
Post the merger, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC will own 41 per cent of HDFC Bank.
HDFC said that its shareholders will get 42 shares of HDFC Bank for every 25 shares of the non-banking lender held by them.
“The proposed transaction would create meaningful value for various stakeholders including respective shareholders, customers, employees, as the combined business would benefit from increased scale, comprehensive product offering, balance sheet resiliency, and the ability to drive synergies across revenue opportunities,” HDFC said in an exchange filing.
“The merger—subject to regulatory approval–is coming together of equals. The customer will be the biggest gainer,” said
Keki Mistry, vice chairman and chief executive officer of HDFC, in an investor call.