HDFC Bank share price surges 15%, HDFC Bank 13%, on merger news; profitability to rise, say analysts

HDFC Bank share price rose 13 per cent on announcement of a transformational merger with HDFC Ltd.

The share exchange ratio for the amalgamation of HDFC with HDFC Bank shall be 42 shares (credited as fully paid up) of HDFC Bank for every 25 fully paid up equity shares of HDFC, it said.

“This merger is the biggest surprise move to markets and is a win-win call for all stakeholders.

This merger will create biggest financial services conglomerate to compete globally,” said Prasanth Tapse, Vice president (Research) Mehta Equities.

HDFC Bank was quoting at Rs 1,713.70, up Rs 13.77 per cent, and HDFC was quoting at Rs 2,818.55, up 15 per cent on the BSE.

Shareholders of HDFC, as on record date, will receive 42 shares of HDFC Bank (FV Re 1/- each) for 25 shares of HDFC Limited (FV Rs. 2/- each).

Buy HDFC stock at 1480-1500 levels

Pavitraa Shetty, Co-founder & Trainer, Tips2Trades said, “Despite strong fundamentals & consistent financial performances since the pandemic,

HDFC group stocks haven’t gone up much making them all the more attractive.

HDFC and HDFC Bank merger will be beneficial for both companies

“HDFC and HDFC Bank merger will be beneficial for both the companies.

With this, HDFC will merge into HDFC Bank and the shareholders of HDFC Bank will become 100% shareholders of HDFC.

Merger: A marriage made in heaven

With this, HDFC will merge into HDFC Bank and the shareholders of HDFC Bank will become 100% shareholders of HDFC.

HDFC group stocks haven’t gone up much making them all the more attractive.