HDFC Twins dominate the market!

HDFC Twins dominate the market!

by 5paisa Research Team Last Updated: Dec 15, 2022 - 06:26 am 32.5k Views
Listen icon

The announcement of the mega-merger of these two giants has received a phenomenal response.

On Monday morning Housing Development Finance Corporation (HDFC), India’s leading housing finance company announced a merger with HDFC Bank, India’s leading private sector bank. This news received a phenomenal response as shares of both entities grew tremendously.

This is one of the biggest mergers in the Indian Financial sector. The share ratio is as follows: 42 shares, credited as fully paid up, of the face value of Re 1 each of HDFC Bank for every 25 fully paid-up equity shares of the face value of Rs 2 each of HDFC.

Post the merger, HDFC Bank will be owned 100% by public shareholders and existing shareholders of HDFC will own around 41% of HDFC Bank. All subsidiaries of HDFC will be owned by HDFC Bank. The transaction is expected to be completed by the third or fourth quarter of FY24. Today the combined market value of both the entities was Rs 14,22,652.57 crore showcasing that it surpassed TCS, indicating that it could be India’s second-largest company after the merger. A possibility that this merged entity may get included in the MSCI Index has been stated.

The merger will enable improved operational efficiency, reduction in default rates, cross-selling of products across a diverse customer base and a wider range of products in the housing finance sector. Apart from the merger, HDFC Bank also witnessed a loan book growth of 20.9% YOY basis to RS 13.7 lakh crore as of March 31 2022.

At the closing bell share price of HDFC Bank Limited was 148.80 points higher at Rs 1654.80 (9.88% higher). The 52-week high was 1725 and the 52-week low was 1292.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.