July 12 fixed as HDFC's last day on stock exchanges

NEW DELHI: Stock exchanges BSE and NSE shall bid farewell to HDFC stock on July 12 which is getting delisted from exchanges following a $64 billion all-stock reverse merger deal with subsidiary HDFC Bank.

In separate notices, both the exchanges have told market participants that HDFC will be suspended from trading with effect from July 13, (i.e., closing hours of trading on July 12).

The mega-merger, which catapults HDFC Bank into the rank of the world's fourth most valued lender bigger than even Morgan Stanley and HSBC, came into effect from July 1.


July 13 has been fixed as the record date for determining the eligibility of shareholders who will get HDFC Bank shares under the merger deal.

According to the merger terms, eligible shareholders of HDFC will receive 42 new HDFC Bank shares for every 25 shares held by them in the former.

"In view of the above, the existing F&O contracts of expiry months July 2023, August 2023, and September 2023 will expire on July 12, 2023, and shall be physically settled," NSE said in a circular.

In the elite club of Nifty50 companies, in which HDFC is also a member, IT company LTIMindtree will take its place from July 13.
Announced in April 2022, the merger of the two entities will create the fourth-largest lender in the world by market capitalisation.

The market cap of the combined entity is estimated to be $172 billion, according to Bloomberg. Bank of America is the third largest with a market capitalization of $228 billion, while JPMorgan Chase is the largest in the world at $417 billion.

HDFC shares ended 3% lower today at Rs 2,796.40 on BSE after rallying non-stop for the last 5 days. The stock has underperformed in 2023 with a rise of 5.5% against a 7% surge in Sensex during the period.

Earlier in the day, HDFC Bank reported that the merged entity's gross advances aggregated to approximately Rs 22,45,000 crore as of June 30, 2023, a growth of 13.1% YoY. Deposits aggregated to approximately Rs 20,63,500 crore as of June 30, 2023, registering a YoY rise of 16.2%.