Non-banking financial company Housing Development Finance Corporation (HDFC) on July 8 said that it has received an approval from the Pension Fund Regulatory and Development Authority (PFRDA) for its planned merger with HDFC Bank.
The approval has been given regarding change in its status/ constitution pursuant to the Scheme in accordance with the PFRDA (Point of Presence) Regulations, 2018, subject to a condition that the services to NPS subscribers associated with HDFC Limited will not be affected due to the Scheme, HDFC said in an exchange filing.
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In the filing, HDFC stated, “We wish to inform you that HDFC Limited has today i.e. on July 8, 2022, received an approval from PFRDA regarding change in its status/ constitution pursuant to the Scheme in accordance with the PFRDA (Point of Presence) Regulations, 2018, subject to a condition that the services to NPS subscribers associated with HDFC Limited will not be affected due to the Scheme.”
HDFC Bank on July 4 said it has got banking sector regulator RBI’s nod for the merger proposal of its parent HDFC Ltd with itself.
Prior to the RBI nod, the proposed merger got approval from both stock exchanges — BSE and NSE – in June last week.
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The merger was announced in April this year when HDFC’s board had cleared the amalgamation of its wholly-owned subsidiaries HDFC Investments Ltd and HDFC Holdings Ltd with HDFC Bank. HDFC Bank’s proposed takeover of the biggest domestic mortgage lender in a deal valued at about $40 billion, will create a financial services titan.
The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.
Once the deal is effective, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
