BSE, NSE Approve Transfer of NCDs From HDFC Ltd To HDFC Bank

HDFC Merger: The stock exchanges BSE & NSE have approved the transfer of non-convertible debentures (NCDs) from HDFC Ltd to HDFC Bank.

Stock exchanges BSE and NSE authorized the assignment of NCDs from the mortgage group to HDFC, paving the way for India’s largest corporate transaction ever, the merger of HDFC and HDFC bank, said the firm on Wednesday.

The two stock exchanges have granted authorization in principle for the transfer to HDFC Bank of further non-convertible debentures (NCD) issued by HDFC Limited subsequent to the receipt of approval on December 13, 2022.

Now, the proposed merger requires final sanction from the Securities and Exchange Board of India (Sebi) in regards to the change in ownership of certain subsidiaries of HDFC Limited, as stated by HDFC Limited.

Notably, the massive merger between HDFC and HDFC bank is anticipated to be completed by the end of the current fiscal year’s October-December quarter. 

In April of last year, HDFC Bank agreed to acquire the largest domestic mortgage lender in a transaction valued at approximately $40 billion. This will result in the emergence of a new financial services titan in the United States.

The combined asset base of the entity will be approximately 18 lakh crore, after the merger.

HDFC Bank will be owned entirely by public shareholders, while existing HDFC shareholders will own 41% of the bank, after the completion of the transaction.

After the merger, each HDFC shareholder will receive 42 HDFC Bank shares for every 25 HDFC shares owned.

The Monetary Authority of Singapore granted HDFC Bank permission to merge HDFC Investments and HDFC Holdings with parent HDFC Ltd. 

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The merger between HDFC Bank and its wholly-owned subsidiary Griha Pte, which is also an international step-down subsidiary of HDFC Limited, has been approved.