HDFC, HDFC Bank merger effective July 1; HDFC shares delisting on July 13

Its Chairman, Deepak Parekh, said in a press conference on Tuesday that the merger of HDFC into HDFC Bank will be effective on July 1. He said the boards of directors of HDFC Bank and HDFC would meet on June 30 after market hours to endorse and approve the merger.

HDFC Vice Chairman and Chief Executive Officer (CEO) Kiki Mistry said the delisting of HDFC shares will be effective on July 13.

Parekh also said HDFC Bank had assured them that “every HDFC employee under the age of 60” would be absorbed into the merged entity and their salaries would not be reduced.

The two entities had announced their plan to merge on April 4 last year. They gained approval from the National Company Law Tribunal (NCLT) later the same year.

After the merger, HDFC Bank will become the tenth largest bank in the world. Each shareholder who has 25 shares of HDFC will get 42 shares of HDFC Bank.