The merger of HDFC Bank and HDFC Ltd has been announced

The Boards of Directors of HDFC Ltd. and HDFC Bank Ltd. approved a composite scheme for the amalgamation of HDFC Investments Ltd. and HDFC Holdings Ltd with and into HDFC Ltd; and HDFC Ltd with and into HDFC Bank, as well as their respective shareholders and creditors. As a result, when the scheme takes effect, public shareholders would control 100% of HDFC Bank, while existing HDFC Ltd. shareholders will own 41%.

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KEY POINTS:

• Closing conditions for the Scheme and the Proposed Transaction are standard. Multiple approvals are required for the programme to be implemented.
• The subsidiaries/associates of HDFC Ltd. shall become subsidiaries/associates of HDFC Bank once the scheme takes effect.
• Shareholders of HDFC Ltd. as of the record date will receive 42 HDFC Bank shares (each with a face value of 1) in exchange for 25 HDFC Ltd. shares (each with a face value of 2), and HDFC Ltd.’s equity share(s) in HDFC Bank would be extinguished as per the scheme.

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