Proposed HDFC-Bank merger receives stock exchanges’ clearance

The merger between HDFC Bank and its parent company HDFC is moving closer to completion, as the proposal has been accepted by the National Stock Exchange and Bombay Stock Exchange, who have stated that they have “no objection”.

HDFC confirmed this in a regulatory filing, stating that they have received observation letters from both exchanges with no adverse observations or objections. However, the amalgamation scheme still requires various statutory and regulatory approvals, including those from the Competition Commission of India, Reserve Bank of India, the National Company Law Tribunal, as well as approval from shareholders and creditors of both companies.

The merger was initially announced in April, with the terms of the deal stating that shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for every 25 shares held, and existing HDFC Ltd shareholders will own 41% of HDFC Bank. On Friday, HDFC Bank’s shares closed at Rs 1,355, a 0.5% increase, while HDFC’s shares closed at Rs 2,205, a 1.6% increase.