HDFC Bank-HDFC Merger - Best Of Both The Worlds: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.HDFC Bank Ltd. and Housing Development Finance Corporation Ltd. have announced a scheme of amalgamation, whereby HDFC will be merged into HDFC Bank. HDFC’s shareholders will receive 42 shares of HDFC Bank for every 25 equity shares held in HDFC. Merger closure is expected within 18 months. HDFC’s existing shareholding in HDFC Bank will extinguish and existing shareholders (of HDFC) will own 41% in the new bank. The new bank will be 100% owned by public shareholders. The announced merger had long been anticipated by investors on both the sides. Cost of regulatory compliance remains a key concern. The underlying rationale for this merger is to create a strong bank with a formidable position in the mortgage segment, which complements HDFC Bank’s existing presence in retail assets (ex-mortgage). The biggest benefit to HDFC will be by way of lower cost of funds, leading to a more competitive positioning in the mortgage segment..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank-HDFC Merger - Best Of Both The Worlds: Nirmal Bang

HDFC Bank-HDFC Merger - Best Of Both The Worlds: Nirmal Bang

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