Latest News | Sebi Approves Proposal for Change in Control of HDFC Capital Advisors as Part of Merger Process

New Delhi, Apr 12 (PTI) HDFC Ltd on Wednesday said that the market regulator Sebi has cleared a proposal for change in control of HDFC Capital Advisors Limited (HCAL).

Sebi vide its letter dated April 10, 2023 to HCAL, a subsidiary of HDFC Limited and a co-investment portfolio manager, has granted its approval for the proposed change in control of HCAL, subject to certain conditions mentioned in the said letter, HDFC said in a regulatory filing.

Also Read | UGC NET Results 2023: National Testing Agency To Release the Results Tomorrow; Students Can Check Results on ugcnet.nta.nic.in.

The proposed amalgamation is subject to receipt of final approvals from Securities and Exchange Board of India (Sebi) in respect of change in control of certain subsidiaries of HDFC Limited, it said.

As per the proposed composite scheme of amalgamation, it said, HDFC Investments Limited and HDFC Holdings Limited, wholly-owned subsidiaries of Housing Development Finance Corporation Limited (HDFC Limited) would be first merged into HDFC Limited and subsequently into HDFC Bank.

Also Read | India's Retail Inflation Eases to 5.66% in March 2023; Falls Within RBI Target Range Now.

HDFC has already received the required approvals from the Securities and Exchange Board, shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority and the Competition Commission of India.

This approval will help pave the way for the merger of HDFC into HDFC Bank expected to be finalised by the third quarter of next financial year.

The proposed entity will have a combined asset base of around Rs 18 lakh crore.

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 shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

(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)