Latest News | HDFC, HDFC Bank Shares Climb
Get latest articles and stories on Latest News at LatestLY. Shares of HDFC and HDFC Bank were in the limelight on Tuesday and ended in the positive territory after announcement that their merger will be effective from July 1.
New Delhi, Jun 27 (PTI) Shares of HDFC and HDFC Bank were in the limelight on Tuesday and ended in the positive territory after announcement that their merger will be effective from July 1.
The stock of HDFC climbed 1.59 per cent to settle at Rs 2,762.50 apiece on the BSE. During the day, it jumped 2.26 per cent to Rs 2,781.
Shares of HDFC Bank advanced 1.38 per cent to end at Rs 1,658 per piece after gaining 2.23 per cent to Rs 1,672 during the day.
The merger of housing finance major HDFC with the country's largest private lender HDFC Bank will be effective from July 1, HDFC Chairman Deepak Parekh said on Tuesday.
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The boards of HDFC and the private bank will meet on June 30 to clear and approve the merger, Parekh told reporters in Mumbai.
The merger of the corporation with HDFC Bank will be effective July 1, Parekh said.
HDFC vice chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective from July 13.
Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.
The proposed entity will have a combined asset base of around Rs 18 lakh crore.
"The domestic market rallied, primarily supported by banking and finance stocks, which received a boost from the merger updates from HDFC," Vinod Nair, Head of Research at Geojit Financial Services, said.
The 30-share BSE Sensex jumped 446.03 points or 0.71 per cent to settle at 63,416.03. The NSE Nifty climbed 126.20 points or 0.68 per cent to end at 18,817.40 points.
"Domestic equities witnessed an up-move led by broad-based buying. HDFC twins too infused strength after the company announced the merger to be effective from 1st July," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd, said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)