HDFC Limited received the nod from both stock exchanges — NSE and BSE — for the proposed merger with HDFC Bank.
Both companies received 'no adverse observations' and 'no objection' from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), respectively.
“The Scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Reserve Bank of India, Competition Commission of India, the National Company Law Tribunal and the respective shareholders and creditors of the companies involved in the Scheme, as may be required,” HDFC and HDFC Bank said in a statement.
The observation letters, dated July 2, 2022, are valid for six months, within which the 'scheme' is to be submitted to the National Company Law Tribunal (NCLT).
On April 4, the boards of both HDFC and HDFC Bank approved a scheme of amalgamation, subject to requisite approvals.
In April, HDFC Bank’s Managing Director and CEO Sashidhar Jagdishan had said, "The micro-enterprises business is firing from all sides. So the ability for us to organically get the priority sector assets is much better than what it was six years ago. In addition to that, if this merger does get approved and gets consummated, we can sort of unleash the affordable housing product from our 50 percent strong distribution."
On liquidity, he had said, “I think both institutions have enough accesses, which could qualify for that. Nevertheless, of course, this is just at a point in time, over the next 18 months, assuming that is the time period, which will take for the regulatory approvals to come through, both institutions will be growing, so the requirement could be larger."
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First Published: Jul 3, 2022 4:30 PM IST
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