M&A

M&A

Mortgage lender HDFC to merge with HDFC Bank

Economic Times  

Mortgage lender HDFC will merge with fellow publicly-listed HDFC Bank. The share merger ratio has been fixed as 42 shares of HDFC Bank for 25 shares of HDFC. The proposed transaction will enable HDFC Bank to build its housing loan portfolio and enhance its existing customer base. As on date, HDFC has total assets of INR 6.23 lakh crore while HDFC Bank has assets worth INR 19.38 lakh crore. Shares of HDFC rose 9.3% to close at INR 2,678.90 upon the deal announcement on March 4, providing it a market cap of INR 4,85,691.18 crore. Shares of HDFC Bank closed at INR 1,656.45 (up 9.97%), providing it a market cap of INR 9,18,591.13 crore. HDFC Bank CEO Sashidhar Jagdishan is expected to lead the merged entity.