Bhubaneswar: The Pension Fund Regulatory and Development Authority (PFRDA) approved the proposed merger of HDFC with its banking subsidiary HDFC Bank soon after the BSE and NSE and the Reserve Bank of India gave their nod.
In a regulatory filing released on Friday, Housing Development Finance Corporation Ltd. (HDFC) announced receiving PFRDA’s approval. The merger is in accordance with the decisions taken by the Board of Directors of HDFC Limited.
“We wish to inform you that HDFC Limited has today i.e. on July 8, 2022, received an approval from PFRDA regarding change in its status/ constitution pursuant to the Scheme in accordance with the PFRDA Regulations, 2018, subject to a condition that the services to NPS subscribers associated with HDFC Limited will not be affected due to the Scheme,” the company informed the exchanges.
The company also added, “The Scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Competition Commission of India, the National Company Law Tribunal, and the respective shareholders and creditors of the companies involved in the Scheme as may be required.”
Earlier on April 4, HDFC Bank agreed to take over the biggest domestic mortgage lender, HDFC Ltd, in a deal valued at about $40 billion. The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
Once the deal is effective, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
Following the merger the combined balance sheet will be Rs 17.87 lakh crore and the net worth will be Rs 3.3 lakh crore, as of December 2021 balance sheet. As of April 1, 2022, the market capitalisation of HDFC Bank was Rs 8.36 lakh crore ($110 billion) and that of HDFC Rs 4.46 lakh crore ( $59 billion).
