CURRENT AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The share exchange ratio for the amalgamation of HDFC with and into HDFC Bank will be 42 equity shares of face value of ₹1. This means, shareholders of HDFC as of record date will receive 42 shares of HDFC Bank (₹1 each) for 25 shares of HDFC Limited (₹2 each).

Detailed explanation-3: -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 held.

Detailed explanation-4: -In early April, the country’s largest private sector lender HDFC Bank announced that it will merge with mortgage lender Housing Development Finance Corporation (HDFC). As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held.

Detailed explanation-5: -Shareholding pattern After the merger, shareholders of HDFC Ltd. will receive 42 shares of HDFC Bank, each carrying a face value of one rupee, for 25 shares of HDFC Ltd. worth Rs 2 each; the exchange ratio will be 1:1.68. This will give them 41% ownership in the merged bank.