Shares of HDFC Bank gained 1.9 per cent to Rs 1,708.6 in Friday's intra-day trade ahead of its merger with HDFC Ltd. The stock was quoting close to its 52-week high level of Rs 1,733.95, hit on May 4, 2023.
Shares of HDFC Ltd, meanwhile, rallied 1.8 per cent to Rs 2,830 apiece. It, too, was hovering around its 52-week high level of Rs 2,867, hit on May 4, 2023.
The Board of HDFC Bank and HDFC Ltd will have separate board meetings today after market hours, which will be the last board meeting of for both of them as a separate entity. The Boards are looking to complete the proposed merger on July 1, 2023. Further, the stock delisting of HDFC Ltd would be effective from July 13.
A combined 17.23 million shares have, thus far, changed hands on the counter of HDFC Bank on the NSE and BSE, while 5.5 million shares have changed hands on the counter of HDFC Ltd. READ MORE
Analysts expect the merged entity of HDFC Bank rank among the world’s most valuable banks. It may rank fourth in equity market capitalization, behind JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp., according to data compiled by Bloomberg. It’s valued at about $172 billion.
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Moreover. the new HDFC Bank entity will have around 120 million customers, command a loan book of Rs 18 trillion, and a balance sheet of $330 billion.
HDFC Bank and HDFC Ltd were among the top contributors on the benchmark S&P BSE Sensex on Friday, accounting for nearly 25 per cent of the index's 700-point rally.
Including today's rally, the stock of HDFC Bank and HDFC Ltf have gained 4 per cent each this week. By comparison, the frontline Sensex index has added 2.6 per cent, while the BSE bankex index is up 2.4 per cent.