India’s biggest merger

India’s biggest merger

Team Ambitiousbaba are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “India’s biggest merger”

India’s biggest merger in the history  has been done as mortgage firm HDFC Ltd is going to be merged with HDFC Bank. It will create banking giant with a market capitalization of Rs 14 lakh crore.

Effect after merger:

HDFC Bank will get 100 per cent ownership by public shareholders where existing shareholders of HDFC Ltd will possess 41 per cent of HDFC Bank. Shareholders of HDFC Ltd will get 42 shares of HDFC Bank (face value of Re 1 each) for 25 shares of HDFC Ltd of Rs 2 each — a ratio of 1:1.68.

After the announcement made by HDFC chairman Deepak Parekh, HDFC Bank shares have increased by 9.97 per cent to Rs 1,656.45 on the BSE Monday. HDFC Ltd shares have increased by 9.30 per cent to close at 2,678.90.

No.2 Company of India:

The combined market capitalization of HDFC Bank is going to overtake TCS and become No. 2 in valuation. Reliance Industries Ltd with Rs 18.01 lakh crore valuations, topped in the list.

Subsidiaries and associates of HDFC Ltd will become subsidiaries and associates of HDFC Bank. HDFC and its two subsidiaries currently hold 21 per cent stake in HDFC Bank. This stake will be sold out after the merger.

About HDFC Bank:

Founded: August 1994

Parent company: HDFC

CEO: Sashidhar Jagadishan

Chairman: Atanu Chakraborty

Headquarter: Mumbai, Maharashtra

HDFC Bank Limited is an Indian banking and financial services company. HDFC Bank is the largest private sector bank by assets in India with a market cap of Rs 9.17 lakh crore.

About HDFC:

Founded: 1977

Chairman: Deepak Parekh

HQ: Mumbai, Maharashtra

Housing Development Finance Corporation Limited is the full form of HDFC. It is an Indian financial services company based in Mumbai.  It is the largest housing finance company of India with total assets under management of Rs 5.26 lakh crore and a market cap of Rs 4.85 lakh crore.


HDFC was included in one of the first to receive an in-principle approval from the RBI to set up a bank in the private sector as part of the RBI opening up the Indian banking industry in 1994. HDFC Bank was formed as a subsidiary of HDFC and later listed its shares.

H T Parekh was the founder chairman of the first retail housing finance company in the country which set up in 1977 as HDFC (Housing Development Finance Corporation).

Question & Answer:

Q1. Which bank will be merged with HDFC Ltd.?

Ans. HDFC Bank

Q2. What is the approximately valuation after merging of HDFC Ltd and HDFC Bank?

Ans. Rs. 14 lakh crore market capitalization

Q3. Which is the first ranked company in terms of market capitalization in India?

Ans. Reliance Industries Ltd.

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