HDFC to vote on merger at October 25 board meeting: Analyst explains how HDFC merger will impact markets
HDFC merger news: In a regulatory filing on Monday, HDFC Bank Limited said it would hold a board meeting on Oct. 25 to vote on the merger. The results of the vote will be known by the first week of December 2022.
“The Honorable NCLT, by order dated October 14, 2022 (“Order”) adopted in said corporate regime application, inter alia directed HDFC Bank to convene a meeting of its shareholders (which include public shareholders ), to approve the arrangement incorporated into the Scheme under sections 230 to 232 of the Companies Act 2013 (“Act”) and other applicable provisions thereof and rules applicable thereunder Friday, November 25, 2022, at 2:30 p.m. (2:30 p.m.) IST via two-way videoconference (“VC”),” the regulatory filing reads.
There will be a merger of HDFC Investments Limited (“Transferor Company No. 1”) and HDFC Holdings Limited (“Transferor Company No. 2”) and Housing Development Finance Corporation Limited (“Transferee Company” https://www.zeebiz. com/”Merged Company”) and HDFC Bank Limited (“Merged Company”).
“This is in relation to Corporate Scheme Application No. 200 of 2022 filed with Hon’ble NCLT in relation to the composite scheme of merger between HDFC Investments Limited (“Transferor Company No. 1”) and HDFC Holdings Limited (“Transferor Company No. 1”) and HDFC Holdings Limited (“Transferor Company No. 2”) and Housing Development Finance Corporation Limited (“Transferee Company”https://www.zeebiz.com/”Merging Company”) and HDFC Bank Limited (“Merged Company”) and their respective shareholders and creditors (“Scheme”),” the filing reads.
What will happen if the merger is approved : Zee Business Analysis
Zee Business Research analyst Nupur Jainkunia said that if the merger is approved, HDFC Bank Ltd will no longer be on the BSE and ESN list. She added that passive traders will be selling in large numbers and this will be a huge exclusion on Nifty as HDFC Ltd weighs around 5.5%.
She further added that after HDFC exits from the indices, there will be a redistribution among the top 10 Nifty stocks for heavyweights, stocks like Reliance, ICICI bank, Infosys will be rebalanced. Upon completion of the whole HDFC merger process, the stock of HDFC will once again see a rise.
Nupur said that with HDFC out of the list, other stocks will have a chance to replace – Pidilite, Ambuja Cement, Tata power and SRF are the names in line to replace HDFC Ltd.
Click here to get more stock market updates I Zee Business Live