HDFC Limited and HDFC Bank have received observation letters with ‘no adverse observations’ from BSE and with ‘no objection’ from the National Stock Exchange (NSE) for the proposed merger of HDFC Investments and HDFC Holdings with HDFC Ltd as well as of HDFC Ltd with and into HDFC Bank.
The development helps the two move closer to the proposed merger.
“The Scheme (of amalgamation) remains subject to various statutory and regulatory approvals inter alia including approvals from the Competition Commission of India, Reserve Bank of India, the National Company Law Tribunal (NCLT) and the respective shareholders and creditors of the companies,” HDFC Ltd said in a stock exchange filing on Saturday.
The validity of the observation letters from the stock exchanges is six months from the issue date, within which the scheme has to be submitted to the NCLT. Both the letters are dated July 2, 2022. The boards of HDFC and HDFC Bank had, on April 4, approved a scheme of amalgamation, subject to requisite approvals.
The boards of HDFC Investments and HDFC Holdings have also approved the merger of their respective companies with and into HDFC Ltd. “The merger is expected to be completed within 12 to 15 month,” HDFC Chairman Deepak Parekh said.