HDFC Limited is planned to be merged with HDFC Bank. The value of this deal is estimated to be around $40 billion. The new entity to be formed after the merger will have combined assets of about Rs 18 lakh crore
Application in NCLT for approval of merger
HDFC Bank has applied for approval of merger with HDFC in NCLT i.e. National Company Law Tribunal. The bank has informed about this today. HDFC Bank has said that it has sought approval from the National Company Law Tribunal for the merger of HDFC Investment Limited and HDFC Holdings Limited with Housing Development Finance Corporation and HDFC Limited with HDFC Bank Limited. These approvals have been sought under sections 230 to 232 of the Companies Act 2013. Earlier in October itself, the NCLT had approved the convening of HDFC’s shareholders’ meeting regarding the merger, which was held last month.
Other necessary approvals have been obtained for the merger.
Prior to this merger deal, many other necessary approvals have been received. Country’s Stock Exchange, Reserve Bank of India, SEBI, Pension Fund Regulation and Development Authority and Competition Commission of India have given in-principle approval to the merger. At the same time, HDFC Limited has also received approval from the Securities and Exchange Board of India (SEBI) to transfer its wholly-owned subsidiary HDFC Property Ventures Limited (HPVL) to HDFC Bank. Only last month, Sasidharan Jagadeesan, CEO and Managing Director of HDFC Bank informed in the shareholders’ meeting that it will take eight to ten months to complete the merger.
At the same time, in HDFC’s meeting, the company’s chairman Deepak Parekh said that HDFC Bank is working with the Reserve Bank of India (RBI) on merger, but shareholders need not worry. Apart from this, HDFC Bank Chairman Atanu Chakraborty said that all the subsidiaries of HDFC will become subsidiaries of the merged entity. However, there are some units which may not be part of the bank and will be disinvested. He said that approval will be sought from RBI and Insurance Regulatory and Development Authority of India for the merger of subsidiaries.
ICICI Bank will double in size after the merger
Under this biggest merger proposal of the Indian corporate world, HDFC Limited is planned to be merged with HDFC Bank. The value of this deal is estimated to be around $40 billion. The new entity to be formed after the merger will have combined assets of about Rs 18 lakh crore. The deal is likely to be completed by the second or third quarter of the next financial year. After the merger, the size of HDFC Bank will be twice that of ICICI Bank.
Source: www.tv9hindi.com”