HDFC - HDFC Bank merger: What's in store for the shareholders?

Shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held

HDFC and HDFC Bank’s merger – touted as India's biggest-ever corporate merger – pumped up shares of the two entities on the bourses. Shares of Housing Finance Development Corporation (HDFC) skyrocketed 9 per cent while those of HDFC Bank zoomed 10 per cent. In comparison, the benchmark S&P BSESensex and the Nifty50 indices settled 2.2 per cent higher on Monday.

However, analysts say investors need to "tame down” their enthusiasm as the merger might hit regulatory road block, if the Reserve Bank of India (RBI) has its way.

Taking cues from the Axis Bank-Max Financial deal, analysts say the banking