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The merger of HDFC Bank and HDFC will be effective 1 July 2023, with 13 July 2023 as the record date to determine the eligible shareholders for allotment of shares under the merger deal.
HDFC had announced its merger with HDFC Bank on 4 April 2022. Shareholders of HDFC as on the record date will receive 42 shares of HDFC Bank (each of face value of Re 1), for 25 shares held in HDFC (each of face value of Rs 2), and the equity share(s) held by HDFC in HDFC Bank will be extinguished as per the Scheme.
As a result of this, upon the Scheme becoming effective, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.
The amalgamation of HDFC Investments and HDFC Holdings (wholly-owned subsidiaries of HDFC) with and into HDFC and HDFC with and into HDFC Bank, shall become effective on 1 July 2023. The boards have set 12 July 2023 as the record date for transfer of non-convertible debentures of HDFC in the name of HDFC Bank.
Effective 7 July 2023, all commercial papers of HDFC will be transferred in the name of HDFC Bank.
On Friday (30 June 2023), HDFC Bank shares rose 1.51% to Rs 1701.75, while HDFC shares rose 1.51% to Rs 2821.50.
The merger, announced in April 2022, will result in the world's fourth largest lender by market capitalisation.
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