HDFC gains after regulatory nod for merger

HDFC rose 1.27% to Rs 1,736.10 at 9:42 IST on BSE after the company said that the insurance regulatory authority has granted its final approval for the merger of HDFC's subsidiary and L&T General Insurance Company.

The announcement was made after market hours on Monday, 14 August 2017. The stock market was shut yesterday, 15 August 2017 on account of Independence Day holiday.

Meanwhile, the S&P BSE Sensex was down 31.18 points or 0.1% at 31,417.85.

On the BSE, 14,000 shares were traded on the counter so far as against the average daily volumes of 2.88 lakh shares in the past one quarter. The stock had hit a high of Rs 1,758.35 and a low of Rs 1,719.50 so far during the day. The stock had hit a record high of Rs 1,799 on 1 August 2017 and a 52-week low of Rs 1,185 on 5 December 2016.

The stock had outperformed the market over the past one month till 14 August 2017, advancing 4.01% compared with the Sensex's 1.79% fall. The stock had also outperformed the market over the past one quarter, gaining 10.69% as against the Sensex's 4.18% rise. The scrip had also outperformed the market over the past one year, advancing 24.36% as against the Sensex's 11.71% rise.

The large-cap company has equity capital of Rs 318.65 crore. Face value per share is Rs 2.

HDFC said that consequent to the approval of the National Company Law Tribunal, the Insurance Regulatory and Development Authority of India on 14 August 2017 has granted its final approval for the merger of HDFC ERGO General Insurance Company, a subsidiary of the company and L&T General Insurance Company.

On consolidated basis, HDFC's net profit fell 2.3% to Rs 2733.87 crore on 6.9% growth in total income to Rs 14463.01 crore in Q1 June 2017 over Q1 June 2016.

HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.

Powered by Capital Market - Live News