The combined market capitalisation of HDFC Bank and Housing Development Finance Corporation (HDFC) soared to Rs 14.22 lakh crore on Monday after the two companies announced the merger proposal.
The HDFC twins' market capitalisation has surpassed the valuation of Tata Consultancy Services (TCS), which has a market cap of Rs 13.73 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.
After the merger announcement, the share price of HDFC skyrocketed by over 13 per cent. With this surge, the company's market capitalisation crossed Rs 5 lakh crore.
The HDFC Bank's share price surged by nearly 10 per cent after the merger announcement. With this rally in the share price, the market capitalisation of HDFC Bank crossed Rs 9 lakh crore.
The country's largest IT firm TCS is currently the second-largest company in terms of market capitalisation. Reliance Industries is India's largest company with a market capitalisation of around Rs 18 lakh crore.
(With inputs from ANI)