The National Company Law Tribunal (NCLT) on Friday gave its approval for the merger of HDFC Property Ventures and HDFC Venture Capital with HDFC Capital Advisors, taking the merger of the parent with HDFC Bank a step closer.
The tribunal is yet to approve the merger of its two insurance arms and the asset management company as also the patent into the bank as part of the USD 40-billion reverse merger.
In its final order, the NCLT sanctioned a composite scheme of amalgamation of HDFC Property Ventures and HDFC Venture Capital into HDFC Capital Advisors, HDFC said in an exchange filing.
The amalgamation will result in simplification, streamlining and optimisation of the group structure and efficient administration, the order said.
Early this week, the tribunal had reserved the order for its approval of the HDFC and HDFC Bank merger after the parties sought 180 days more for the process.
HDFC has already received the required approvals from the Securities and Exchange Board, shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority and the Competition Commission of India.
This approval will help pave the way for the merger of HDFC into HDFC Bank expected to be finalised by the third quarter of next financial year.
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.
Source: Business-Standard