Housing Development Finance Corporation (HDFC) is going to be merged with HDFC Bank and its preparations have been completed. It was officially announced on Monday. Chairman Deepak Parekh said that after this transformational merger, HDFC will have 41 per cent stake in the bank.
Process to be completed by 2024
HDFC said on April 4 that its board has approved the merger of its wholly owned subsidiaries HDFC Investment Ltd and HDFC Holdings Ltd with HDFC Bank Ltd. According to the report, the merger process of HDFC- HDFC Bank is expected to be completed by the second or third quarter of FY 2024.
Market cap will be higher than TCS
The market cap of the merged entity will be higher than that of Tata Consultancy Services (TCS). It is worth noting that at present, Mukesh Ambani’s Reliance Industries is at number one and TCS is at number two. After the merger, public shareholders will have 100% stake in HDFC Bank. Post the merger, it will be the second largest company by market cap, overtaking TCS.