HDFC Ltd merges with HDFC Bank
What happened. The merger of HDFC Ltd into HDFC Bank became effective on 1 July 2023, creating one of the world's largest banks by market capitalisation, with HDFC Ltd shareholders receiving 42 HDFC Bank shares for every 25 held.
Why it matters for investors. The merger changed index weights and foreign-ownership limits, and prompted index funds and ETFs to rebalance. It also expanded the bank's mortgage book significantly.
Event date: 1 Jul 2023. Source: Stock exchange filings by HDFC Bank and HDFC Ltd; NCLT approval.
Important: This article is general information and not personal investment advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Please consider your own goals and risk profile, and consult a qualified adviser, before you invest.
Market commentary: This is general market commentary and not a recommendation to buy, sell or hold any security. Investments in the securities market are subject to market risks; read all related documents carefully before investing.