HDFC Bank on Monday said Monetary Authority of Singapore (MAS) has given approval for merger of HDFC Investments and HDFC Holdings with parent HDFC Ltd. As part of a composite scheme of amalgamation, Griha Pte, a wholly-owned subsidiary of HDFC Investments and a foreign step-down subsidiary of HDFC Ltd, received approval for the merger with HDFC Bank.
MAS vide its e-mail dated April 24, 2023 to Griha Pte, granted its approval for the acquisition of shares in Griha Pte by HDFC Bank, which would result in the bank acquiring 20 per cent or more of the issued share capital of Griha Pte.
The proposed amalgamation is subject to receipt of final approvals from the Securities and Exchange Board of India (Sebi) in respect of change in control of certain subsidiaries of HDFC Ltd.
This approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of this financial year.
Termed the biggest transaction in India’s corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.
The proposed entity will have a combined asset base of around Rs 18 lakh crore.
Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.
Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.