HDFC twins to be second largest company in India post-merger

AgenciesUpdated: Monday, April 04, 2022, 04:29 PM IST
article-image
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. / Representational image |

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)

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Daily Horoscope for Wednesday, August 10, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Wednesday, August 10, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

UGC expects 15,000 African students to avail distance learning programmes on e-Vidya Bharati portal

UGC expects 15,000 African students to avail distance learning programmes on e-Vidya Bharati portal

JEE Main 2022: Despite the challenges, this Mumbai student topped in PWD category

JEE Main 2022: Despite the challenges, this Mumbai student topped in PWD category

Government of India tells airlines to share information of international passenger

Government of India tells airlines to share information of international passenger

Mumbai: Plea against metro depot work in Kanjurmarg, now ‘not pressed’, disposed of

Mumbai: Plea against metro depot work in Kanjurmarg, now ‘not pressed’, disposed of