According to the information in the exchange filing, HDFC Bank will grant eligible shareholders 42 new fully paid-up equity shares with a face value of Re 1 each for every 25 fully paid-up equity shares they currently hold in HDFC Ltd., which have a face value of ₹2 each. This will be done in accordance with the merger scheme and will take effect on the Record Date, which is July 13, 2023.
Commenting on the merger's completion, Sashi Jagdishan, CEO & MD of HDFC Bank, expressed his confidence in the significant impact this event will have on their journey.
He believes that the combined strength of the two entities will allow them to establish a comprehensive financial services ecosystem.
Jagdishan warmly welcomed the highly skilled HDFC Ltd. team to the HDFC Bank family and emphasized that their collective journey would be characterized by adaptability, agility, and an unwavering commitment to excellence.
Looking ahead, he stated their readiness to view challenges as opportunities, learn from experiences, and strive to become the standard of success and integrity within the financial services industry.
Here are some of the key benefits of the HDFC merger:
Increased scale and reach: The merged entity will have a larger customer base and a wider geographic reach.
Enhanced product offerings: The merged entity will be able to offer a wider range of financial products and services.
Improved financial strength: The merged entity will have a stronger balance sheet and a higher credit rating.
Increased efficiency: The merged entity will be able to achieve greater efficiency through economies of scale.
The HDFC merger is a significant development in the Indian financial sector. It is expected to have a positive impact on the Indian economy in the years to come
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