The last date to buy shares of Housing Development Finance Corp. (HDFC) is July 12 i.e. today. All existing monthly and weekly contracts in the underlying HDFC contracts with expiry dates post July 12, shall expire on July 12, according to the NSE statement. This comes on the back of HDFC merging with HDFC Bank on July 1, 2023.
Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4, 2022, agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan. Consequently, the record date, or the cut-off day set for shareholders, to become eligible for getting shares of HDFC Bank for every share of HDFC held is July 13.
Impact on shareholders
HDFC stock delisting will happen on July 13 and it would start trading under HDFC Bank. HDFC will go off the bourses and shareholders will get their shares converted to HDFC Bank. The shareholders of HDFC Ltd will hold 41 percent of HDFC Bank Ltd. However, there is no need to worry since the HDFC shares will still be traded on exchanges under the HDFC Bank scrip codes.
HDFC Bank will issue and allot to eligible shareholders 42 new equity shares of the face value of Re 1 each, credited as fully paid-up, for every 25 equity shares of the face value of Rs 2 each fully paid-up held by such shareholder in HDFC as on Thursday.
Changes in HDFC Bank shares
With HDFC shares getting converted into HDFC Bank, the latter would become the most heavyweight stock on Nifty with about 14.43 percent weight. As of June 30, HDFC Bank's market value stood around Rs 9,51,584.36 crore and HDFC's capitalisation was at Rs 5,22,368.64 crore. The merged entity’s market cap would be Rs 14,73,953 crore, which will be higher than TCS, which at present is the second largest company with a market cap of Rs 12.11 lakh crore.
In the Nifty Index, the relative weight of the merged entity would be around 15 percent.
Stocks' performance
On the last day of trading, HDFC shares opened at Rs 2,750.40 apiece on BSE. At the time of writing this report, the stocks were 0.44 percent up at Rs 2,759. On the other hand, HDFC Bank opened higher at Rs 1,655 apiece on the BSE. It was 0.22 percent up at Rs 1,652.35 at the time of writing this report.
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