Share price of the country's largest private sector lender HDFC Bank and mortgage lender Housing Development Finance Corporation (HDFC) Ltd surged by nearly 14 per cent on Monday after the two companies announced merger proposal.
The share price of HDFC Ltd surged to a high of Rs 2855.35 shortly after the opening of the trade. At 13.55 pm at the BSE, the share of HDFC was trading 8.81 per cent higher at Rs 2666.85. The scrip registered a gain of over 14 per cent in the morning trade.
With this surge, the market capitalisation of HDFC soared past Rs 5 lakh crore.
HDFC Bank was trading 8.81 per cent higher at Rs 1639.05 at 13.58 pm at the BSE. The scrip earlier soared to a high of Rs 1721.85 in the morning trade. The market capitalisation of HDFC Bank soared past Rs 9 lakh crore.
The Board of Directors of HDFC Ltd and HDFC Bank on Monday approved a proposal for the merger of the two leading financial institutions of the country. As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank.
Post the merger, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC Limited will own 41 per cent of HDFC Bank.
The combined market capitalisation of HDFC Bank and Housing Development Finance Corporation (HDFC) soared to Rs 14.22 lakh crore in the morning trade on Monday, the second-highest after Reliance Industries, which has a market capitalisation of around Rs 18 lakh crore.
( With inputs from ANI )
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