Soon after he announced the merger of HDFC with HDFC Bank, Deepak Parekh, the Chairman of the mortgage lender HDFC said that he had spent “two sleepless nights” prior to the big development, which he also described like a son taking over his father's business when he grows older.
The HDFC chief quipped, "As the son grows older, he acquires the father's business. This is a friendly merger. We won't be thrown out. After 45 years in housing finance, we have to find a home for ourselves which we found in our own family company HDFC Bank."
Under the proposed deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. The companies expect the deal - subject to regulatory approvals - to be completed in the second or third quarter of the financial year starting in April 2023.
Mr Parekh further said that “This is a merger of equals. We believe that the housing finance business is poised to grow in leaps and bounds due to the implementation of RERA, infrastructure status to the housing sector, government initiatives like affordable housing for all, amongst others”.
“Housing finance business is poised to grow. The merger will accelerate the pace of credit growth,” he added further.
Post the merger, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC Limited will own 41 per cent of HDFC Bank.
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