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HDFC twins may merge by April next year, says Chairman Deepak Parekh

Parekh said the voting process of shareholders on the proposed merger has received "fair amount of votes" from shareholders already

HDFC | HDFC Bank | Deepak Parekh

Nikesh Singh  |  New Delhi 

India's economic fundamentals strong, recovery underway, says Deepak Parekh
HDFC's Chairman Deepak Parekh says Satyam scam was a failure of chartered accountants

The merger with Bank may be completed by April next year, Chairman said on Wednesday.

“The bank will go back to (National Company Law Tribunal) for approval after getting the shareholders’ approval. The proposed merger of and is expected to fructify by April 2023,” he said at an event in New Delhi.

Parekh said the voting process of shareholders on the proposed merger had received “fair amount of votes” from shareholders already. The merger would require 75 per cent shareholders’ approval.

Last month, had given its nod for holding a shareholders’ meeting for obtaining approval for the proposed merger of HDFC, India’s largest mortgage firm with its offspring .

HDFC has also received approval from the (Sebi) for transfer of HDFC Property Ventures (HPVL), a wholly-owned subsidiary, to HDFC Bank.

The meeting would be convened on November 25, 2022, for the purpose of considering and approving the Scheme of Amalgamation, HDFC had earlier said in a regulatory filing last month.

In April this year, HDFC Bank had agreed to take over the biggest domestic mortgage lender in a deal valued at $40 billion making it the biggest transaction in India’s corporate history.

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 will get 42 shares of HDFC Bank for every 25 shares held. Post-merger, HDFC Bank will be twice the size of ICICI Bank, which is the third-largest lender now.

Parekh, at the event, said the Satyam scam was in reality a failure of (CAs) who failed to flag discrepancies in account books.

He said all independent directors of Satyam Computer Services functioned as rubber stamps of the company’s founder B Ramalinga Raju.

Satyam Computer Services was hit by an accounting scam perpetrated by its founder Raju that came to light in January 2009 and the once-storied company was later acquired by Tech Mahindra in the same year in April. The Rs 7,800-crore fraud came to light in January 2009 after Raju admitted to cooking up account books and inflated profits for several years.

(With PTI inputs)

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First Published: Wed, November 23 2022. 21:29 IST