HDFC and HDFC Bank Merger likely To be Effective from July 1
The merger between Housing Development Finance Corporation Ltd. and HDFC Bank Ltd., according to Chairman Deepak Parekh, is anticipated to go into effect on July 1. In order to clear and accept the merger, the boards of HDFC Bank and HDFC would meet on June 30 after market hours, according to Parekh, who also noted that the deal had acquired all necessary regulatory approvals.
"HDFC-HDFC Bank merger will be effective on July 1.The boards of HDFC and the private bank will meet on June 30 post to clear and approve the merger. It will be the last board meeting of HDFC," Parekh added.
As per Vice-Chairman and CEO Keki Mistry, the delisting of HDFC stock will take effect on July 13 and it will begin trading under the HDFC Bank ticker. According to the senior management of the housing financing company, HDFC shareholders would receive their HDFC Bank shares in one to three days.
"On July 13, HDFC Ltd stock will go off the bourses and shareholders will get their shares converted to HDFC Bank," said Mistry.
Hours after the press conference, HDFC said in a stock exchange filing that the effective merger date and record date announced by the HDFC top management are 'tentative' and "subject to the completion of certain formalities".
"Please note that the dates are tentative and are subject to completion of certain formalities including those which are beyond the control of HDFC Limited or HDFC Bank. Once the board of directors of HDFC Limited and HDFC Bank decide on the Effective Date of the Scheme as well as the Record Date, the same would be intimated to stock exchanges in accordance with applicable regulations," said HDFC in a stock exchange filing.