LTIMindtree to enter Nifty50: The merger of HDFC Bank and HDFC Ltd will be effective July 1, HDFC Chairman Deepak Parekh said on Tuesday. The boards of HDFC and the private bank will meet on June 30 to clear and approve the merger, Parekh told reporters. As per Nuvama, LTIMindtree can enter the Nifty50 index in place of HDFC Ltd, Zee Business reported. The report further said that LTIMindtree can enter the index after the ex-date of the merger. There could be an official announcement from the bourses soon. Besides, the stock is expected to see an inflow of Rs 1,200 to Rs 1,300 crore on its inclusion in the index, the report said further.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The boards of HDFC and the private bank will meet on June 30 to clear and approve the merger, Parekh told reporters. The merger of the corporation with HDFC Bank will be effective July 1, Parekh said. HDFC vice chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective July 13.

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.

Termed the biggest transaction in India's corporate history, HDFC Bank agreed on April 4 last year to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan. The proposed entity will have a combined asset base of around Rs 18 lakh crore.