HDFC twins soar

The newsmaker of the day is obviously HDFC and HDFC Bank. The merger approved by the Board has sent the twin stocks and the bourses soaring.

HDFC zoomed up 16.5% to an intraday high at Rs.2855.35 and HDFC Bank rose 14.5% to Rs.1721.85, juts a tad away from its 52-week high of Rs.1724.30.

HDFC will be merged into HDFC Bank and the shareholders of HDFC will get 42 shares of HDFC Bank for every 25 shares held.

Subsidiary/associates of HDFC will become subsidiary/associates of HDFC Bank and HDFC’s shareholding in HDFC Bank will be extinguished, making HDFC Bank a full-fledged public company.

HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

Closing is expected to be achieved by Q2/Q3 FY24.

Apart from the scales of economy, the combined Balance Sheet will be of Rs.18 trillion with net worth of Rs.3.3 trillion, enabling larger underwriting at scale.