India’s largest housing finance company, HDFC Ltd, would merge/ amalgamate with the country's largest private sector lender, HDFC Bank, according to a regulatory filing.
HDFC Bank stated in a filing on Monday that the proposed merger will be subject to several regulatory clearances, including those from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi). The proposed agreement will have a share exchange ratio of 42 HDFC Bank equity shares for every 25 HDFC Ltd equity shares.
"After considering the Audit Committee's and Committee of Independent Directors' recommendations and reports, the Board of Directors of HDFC Bank approved a composite scheme of amalgamation of HDFC Investments and HDFC Holdings into and with Housing Development Finance Corporation Limited (HDFC Ltd); and HDFC Ltd into HDFC Bank, and their respective shareholders and creditors," according to the filing.
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