HDFC Bank share price

 

HDFC Bank share price to remain in focus following merger with HDFC:

HDFC Bank shares will be in focus as the merger between HDFC Bank and HDFC Ltd. took effect on July 1, creating the largest private lender in India. The share exchange is set to take place on July 13, 2023.

HDFC Bank shares closed 1.51% higher at ₹1,701.75 apiece on BSE on Friday. (REUTERS)

HDFC Bank shares gained over 2% and touched a new 52-week high on Monday following merger of HDFC Bank and Housing Development Finance Corporation  (HDFC), which came into effect on Saturday July 1. The largest private lender in India has emerged owing to the merger. HDFC Bank is currently ranked fourth in terms of equity market capitalisation. HDFC Bank share price opened at ₹1714.90 apiece on BSE. 

HDFC Bank shares closed 1.51% higher at ₹1,701.75 apiece on BSE on Friday. According to analysts, HDFC Bank, post the corporate action the stock prices have seen a strong gap up opening and has crossed above its multiple month high, bias remains positive where the prices are likely to extend towards 1,850 and 1,670 as immediate support.

Although the share exchange between the owners of these two major companies is set to take place on July 13, 2023, the bank has emphasised that the merger only became effective on July 1. This means that starting on Monday of the next week and continuing through July 13, the trading window for HDFC Ltd will be closed.https://dprakash2023.blogspot.com/2023/08/forget-superfoods-why-peanut-butter.html

According to an exchange filing, HDFC Bank reported on Saturday that the merger of HDFC Ltd. had been successfully completed, following the receipt of all necessary shareholder and regulatory clearances. Subject to receiving all required permits and approvals, HDFC Bank and HDFC Ltd. announced their intention to merge on April 4, 2022. They gave the merger process a 15–18 month completion window.

The merged entity inter-alia brings together significant complementarities that exist between both the entities and is poised to create meaningful value for various stakeholders, including respective customers, employees, and shareholders of both the entities from increased scale, comprehensive product offering, balance sheet resiliency and ability to drive synergies across revenue opportunities, operating efficiencies and underwriting efficiencies, said the bank in an exchange filing. 

As per an exchange filing, post the merger, HDFC Bank has no identified promoter. It also marks the transformation of HDFC Bank into a financial services conglomerate that offers a full suite of financial services, from banking to insurance, and mutual funds through its subsidiaries. So far, the Bank was a distributor for these products.

The merger of India’s largest Housing Finance Company, HDFC Ltd. with the largest private sector bank in India combines the strengths of a trusted home loan brand with an institution that enjoys a lower cost of funds. The larger net-worth would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans and contribute further to nation building and employment generation.

All employees of HDFC Ltd as on effective date become HDFC Bank employees. Over the past months, the Bank has been preparing for smooth integration not only of systems and processes, but also of all aspects that will make HDFC Bank a welcoming place of work for the employees from HDFC Ltd.

Post merger, the key HDFC Bank subsidiaries include HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd, HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd. and HDFC Life Insurance Co. Ltd.