India's largest private lender HDFC Bank will merge with housing finance firm HDFC Ltd, the companies said today(4 March 2022).
As part of the deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 percent of HDFC Bank. Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company, according to reports.
The subsidiaries and associates of HDFC Ltd will shift to HDFC Bank, the companies said in a regulatory 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.
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