HDFC and HDFC Bank investors get richer by Rs 34,689.4 crore in two days

HDFC-HDFC Bank: After the finalisation of the merger date between HDFC and HDFC Bank, investors showed buying interest in both stocks. In the past two trading sessions, both HDFC and HDFC Bank’s shares have risen over 2 per cent each.

The market capitalisation, the aggregate valuation of the company based on its current share price and the total number of outstanding stocks, of HDFC rose by Rs 11,163.4 crore in two days to Rs 5,14,600.3 crore, and HDFC Bank’s market capitalisation increased by Rs 22,926.4 crore to Rs 9,37,409.2 crore during this period.

The investors in HDFC and HDFC Bank got richer by Rs 34,689.4 crore in two days.

HDFC-HDFC merger details

The merger of HDFC and HDFC Bank will come into effect on July 1 following the board meetings of HDFC and HDFC Bank on June 30, after which HDFC Bank will become the second largest bank after SBI, and HDFC Ltd shares will cease trading on July 13.

After the completion of the merger on July 1, HDFC Ltd. will hold a 41 per cent stake in HDFC Bank. The bank will maintain a Swap ratio—an exchange ratio in which the shares of the target company are swapped for a share in the acquiring company—of 25:42, so for every 25 shares of HDFC Ltd., 42 shares of HDFC Bank will be given.

As per the estimates of the analysts, the size of the balance sheet of the merged entity will be more than Rs 18 lakh crore, and it is likely to generate a profit of around Rs 50,000 crore.

Also Read: HDFC Bank-HDFC merger to be effective from July 1: All you need to know

HDFC Bank share price: Past performance

So far in 2023, shares of HDFC Bank have risen over 2 per cent as compared to the headline index’s rise of over 4 per cent.

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