The boards of mortgage lender Housing Development Finance Corporation (HDFC) and private lender HDFC Bank have approved July 1 as the effective date of merger, and July 13 as the record date.
The board has approved "July 1, 2023, to be the ‘effective date’ of the (amalgamation) scheme, on which date the certified order of the NCLT sanctioning the scheme will be filed by HDFC Investments, HDFC Holdings, the Corporation and HDFC Bank with the Registrar of Companies (RoC)", a regulatory filing by HDFC stated.
The Mumbai-bench of the National Company Law Tribunal (NCLT) had given its clearance to the HDFC-HDFC Bank merger in an order issued on March 17.
The exchange filing further added that in consultation with the board of directors of HDFC Bank, it was decided to fix July 13 as the "record date" for determining the shareholders of HDFC who "shall be issued and allotted the shares of HDFC Bank".
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July 13 has also been fixed as the record date for "continuation of warrants of the Corporation in the name of HDFC Bank", it added.
The filing also noted that July 7 has been fixed as the record date for "transfer of commercial papers of the Corporation in the name of
HDFC Bank", and July 12 for "transfer of non-convertible debentures".
Commenting on the boards' final approval for the mega-merger, HDFC Bank MD and CEO Sashidhar Jagdishan said, "This is a defining event in our journey and I’m confident that our combined strength will enable us to create a holistic ecosystem of financial services. We’re truly happy to
welcome the talented team of HDFC Ltd into the HDFC Bank family."
Notably, the twin entities had first announced the decision to merge on April 4, 2022. As per the plan, HDFC is to acquire a 41 percent stake in HDFC Bank through the amalgamation.
On March 10, in an exclusive interview with Moneycontrol, HDFC Vice Chairman and Chief Executive Officer Keki Mistry said that the merger will lead to bigger growth opportunities for the combined entity.
“Gradually, the objective is to expand housing loans from more and more branches of the bank. The growth opportunity on housing loans will be bigger in HDFC Bank (the combined entity) than HDFC,” said Mistry.
Once the deal comes into force, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank.
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