HDFC Asset Management Company (AMC) on Wednesday informed the stock exchanges that it had received the market regulator SEBI's final approval for a change in control due to the HDFC-HDFC Bank merger. This is subject to compliance with the applicable provisions of PMS regulations, and circulars thereto, HDFC AMC said in a regulatory filing.
Last month, HDFC Ltd said both stock exchanges, BSE and NSE, have approved the transfer of NCDs from the mortgage firm to HDFC Bank as part of the amalgamation process. BSE and NSE, vide their letters dated April 26, 2023, granted their in-principle approval for the transfer of additional NCDs (non-convertible debentures) issued by HDFC Limited post receipt of the earlier approval on December 13, 2022, to HDFC Bank.
Ahead of the merger of HDFC Ltd and HDFC Bank, the Reserve Bank of India (RBI) earlier allowed HDFC Bank Ltd and Housing Development Finance Corporation (HDFC) to select regulatory relief to smooth out the process. The merger is set to conclude by July this year.
Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan. The proposed entity will have a combined asset base of around Rs 18 lakh crore.
Once the deal is effective, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.
At the time of writing this report, HDFC AMC was trading 1.36 percent lower at Rs 1,742.45 apiece.
First Published: May 24, 2023 4:29 PM IST
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