The National Company Law Tribunal (NCLT) approved the merger of Housing Development Finance Corporation (HDFC), HDFC Investments and HDFC Holdings with HDFC Bank on Friday.
The board of the two companies had approved the merger in April 2022, following which it has received the approval of the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), Competition Commission of India (CCI) and stock exchanges.
NCLT also approved holding a shareholders’ meeting for obtaining approval for the proposed merger, which is expected to be completed by Q3FY24.
Under the scheme of amalgamation, HDFC’s shareholders will receive 42 shares of HDFC Bank for 25 shares of HDFC. Post the merger, HDFC Bank will be wholly-owned by public shareholders, with HDFC shareholders owing 41 per cent stake.
Further, HDFC Bank on Friday, allotted 7.9 lakh shares to its employees under the Employees Stock Options Scheme. The share capital of the bank now stands at Rs 558 crore.
Meanwhile, the board of HDFC said it will meet on March 27 to consider raising up to Rs 57,000 crore, through the issue of unsecured redeemable nonconvertible debentures, in various tranches.