NCLT Allows Merger Of HDFC's Two Subsidiaries With HDFC Capital Advisors Ahead Of HDFC Bank Deal

As part of merger deal with HDFC Bank, HDFC had e-filed an application with NCLT in August last year for the merger of HPVL and HVCL with HACL.

Following this, NCLT granted its approval for the merger of the two real estate private equity investment companies on March 3rd, 2023.

Earlier, in July last year, market regulator Sebi had granted its approval for the change in control of HDFC Property Ventures.

In April last year, HDFC and HDFC Bank's board approved a composite scheme of amalgamation where subsidiaries of HDFC will become subsidiaries of HDFC Bank. This will lead to an overall merger of HDFC into HDFC Bank.

Under the proposed scheme, shareholders of HDFC will receive 42 shares of HDFC Bank (each of face value of Re 1) for 25 shares held in HDFC (each having a face value of ₹2). And the equity shares held by HDFC in HDFC Bank will be extinguished upon the completion of the scheme.

Post the transaction, HDFC Bank will be 100% owned by public shareholders, and the existing shareholders of HDFC will own 41% of the private sector bank.

Together, the combined entity is expected to bring complementary strengths of the two organizations, enabling a rewarding customer relationship.

HDFC Bank's customers will be offered mortgages as a core product in a seamless manner. The bank's customers will also leverage the long-tenor mortgage relationship to offer varied credit and deposit products enabled through better insights throughout the customer life-cycle. This will result in an enhanced value proposition and customer experience for all customers of the combined entity.

This would be one of the biggest mergers in the country's corporate history.