Merger of HDFC with HDFC Bank effective from July 1: HDFC Chairman Deepak Parekh

The merger of housing finance major Housing Development Finance Corporation Limited with the private lender HDFC Bank will be effective from July 1, HDFC Chairman Deepak Parekh said on Tuesday. Parekh also added that the boards of HDFC and the private bank will meet on June 30 to clear and approve the merger.

"HDFC-HDFC Bank merger will be effective on July 1. Both companies will have separate board meetings on June 30 after office hours. It will be the last board meeting of HDFC," Parekh said.

HDFC vice-chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective from July 13.

Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.

The proposed entity will have a combined asset base of around Rs 18 lakh crore.

Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.

Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

With inputs from Agencies