HDFC & HDFC Merger

On Monday, HDFC Bank and HDFC Limited declared their intention to merge, paving the way for one of Indiaʹs largest financial transactions. The announcement of the merger resulted in a substantial increase in the two companiesʹ share values, which were up over 7% in early trading hours on Monday. According to a filing with the stock exchanges by the HDFC Bank, the transformational merger will result in HDFC acquiring a 41% stake in the HDFC Bank.



HDFC Limited is Indiaʹs one of the oldest and one of the largest housing finance companies with Rs 5.26 trillion in assets under management (AUM) and it has a market capitalization of Rs 4.44 trillion, which is going to merge with HDFC Bank which is Indiaʹs largest private sector bank by assets having a market capitalization of about Rs 8.35 trillion, as per the transaction structure.



  • Reason behind the Merger: 


The board of both HDFC Limited and HDFC Bank feel that the merger will benefit all stakeholders, including customers, workers, and shareholders of both companies, in the long run. The merger of the two companies will provide the governmentʹs aim of "Housing for All" a boost, according to HDFC. 



Deepak Parekh, Chairman of HDFC Ltd, declared, "This is a merger of equals." The adoption of RERA, the housing sectorʹs infrastructure status, and government efforts such as affordable housing for everyone, among other things, are expected to propel the housing finance industry forward in leaps and bounds.



Various legislation for banks and NBFCs have been unified in recent years, enabling a possible merger, according to Deepak Parekh at the press conference. “Additionally, the enhanced balance sheet would further encourage financing of large-scale infrastructure development loans, promote credit growth in the economy, boost low-cost housing, and expand financing to important sectors, including agricultural credit,” he added.



The transaction is likely to be finalized in the next 18 months owing to the multiple approvals required, and also subject to regulatory clearances and other conditions, according to HDFC Bank.



  • What will be the Share Swap Ratio?


HDFC Limited shareholders would receive 42 HDFC Bank shares for every 25 HDFC Limited shares they own as of the record date.



  • What are the Merits of the Merger for the two companies?


While the move will help them utilize their distribution across urban, semi-urban, and rural regions, it will also boost their capacity to cross-sell products to a bigger consumer base. The combined financial sheet of Rs 17.87 trillion and the net value of Rs 3.3 trillion will allow for higher-scale underwriting.



The mega-merger of HDFC Ltd and HDFC bank will unleash value for HDFC bank, allowing it to establish a strong home loan portfolio and engage in the housing cycle by expanding its clientele. The amalgamated entity might become the Nifty 50ʹs highest-weighted single corporation.



Happy Trading, Happy Investing!!!


To open your Free Demat & Trading Account, click here -


To subscribe to our YouTube channel, click on this link –


Follow our Official Social Media pages -

Facebook -      

Twitter -


To Download Aryaamoney Mobile App (Android Version), click here -

To Download the Aryaamoney Mobile App (iOS Version) click here -

Stock Market T+1 Settlement Cycle in India Active v/s Passive Investing - Which is Better? HDFC & HDFC Merger Sri Lankaʹs Economic Crisis Warren Buffet Timeline Russian Stock Market Index Best Share Market Quotes What is Dividend in Share Market? Best SIP to Invest in 2022 Share Market in Hindi What is Share Market? Best Mutual Funds to Invest in 2022 Story of Warren Buffet & Bill Gates’ First Meeting Share Market Holidays – 2022 How to Invest In IPO’s – 2022 ? Best Share Market App What are Penny Stocks? What is Candlestick Chart Pattern? Systematic Invest Plan (SIP) What is Market Capitalization? How to Start Investing in the Share Market? Share Market Crash 2021 Quarterly Results Trading Strategy Which Shares to Buy After The Budget? What is Sensex & Nifty? - Part II What is Sensex & Nifty? - Part I How to Find Out Whether Share Market Valuation Is Expensive or Not? How to Find the Best Shares For Long-term? Chart Patterns Study Share Market News Chart Patterns - Trading Strategies Investing Based Upon Business Model of Companies Return on Invested Capital and Durable Competitive Advantage Learn Technical Analysis With Example Warren Buffet Indicator Explained Techno – Fundamental Analysis How to Invest When Nifty PE Ratio Has Gone Beyond 30? - Part II How to Invest When Nifty PE Ratio Has Gone Beyond 30? - Part I Price to Earnings Ratio & FOMO - Part II Price to Earnings Ratio & FOMO - Part I Where Can We Expect a Big Boom in the market? Stock Market Analysis – July 2020 Stock Market for Beginners – Dr. Vivek Bindra – Part II Stock Market for Beginners – Dr. Vivek Bindra – Part I Stock Market Analysis – June 2020 Is the Next Debt Crisis Coming Soon? Next Stock Market Crash Prediction How to Grow Your Money via Mutual Funds? Role of Price & Earning in the Stock Market – Fundamental Analysis Share Market Trading Guide How to Make a Successful Investment Decision? Why & How Did Ajay Lose Money In The Share Market? Which Is More Profitable – Gold or Share Market – Part I Share Market Crash 2020 What is Short-Sell? - Part II What is Short-Sell? - Part I Pump & Dump Scam Stock Market Strategy Rakesh Jhunjhunwala Stock Market Strategy Which is the Best Mutual Fund to Invest In? – Part 2 Which is the Best Mutual Fund to Invest In? – Part 1 4 Step Market Analysis What is Short-term & Medium-term Trading? Basic Financial Planning Bitcoin & Cryptocurrency The Warren Buffet Indicator How to Make a Huge Amount of Money??? Rakesh Jhunjhunwala - Case Study Share Market Tips!!! Be Aware!!! Can Intra-day Trading Make You an Over-night Millionaire? Yes Bank & DHFL – Case Study Where To Open Demat & Trading Account? Inspiring Story of a Dancer Who Made $ 2 Million From The Stock Market!!! Part II Jackpot Trading - Case Study Jackpot Trading How to Cut Your Losses Short? How to Make Money during Recession? Modi 2.0 Inspiring Story of a Dancer Who Made $ 2 Million From The Stock Market!!! Part I Can You Become a Millionaire By Forex Trading? Great Ways to Learn Stock Market How to start Investment in Share Market How to Choose Stocks for Long Term Investment Share Market Tips and Investments Top 5 Ways to assess Stock Market Performance The Magic of Math in Stock Market Trading Stock Market Terms Every Investor Should Know The Golden Rules of Investing Why you should choose ARYAAMONEY for share market tips Stock Tips that should be followed by New Investors