HDFC Bank distributes Rs 42.40 crore to fractional shareholders of HDFC Ltd

HDFC Bank on Thursday announced that it has distributed Rs 42.40 crore to fractional shareholders of HDFC Ltd through a trust created after the merger with its parent. The reverse merger of HDFC Bank with HDFC Ltd was effective from July 1, 2023. As per the Composite Scheme of Amalgamation, HDFC Bank issued and allotted to eligible shareholders 42 new equity shares of the face value of Re 1 each, credited as fully paid-up, for every 25 equity shares of the face value of Rs 2 each fully paid-up held by such shareholders in HDFC Ltd as on the record date -- July 13, 2023.

Fractional Entitlements

The fractional entitlements were consolidated, and the aggregate of such fractions was rounded up to the next whole number and allotted directly to HDFC Bank Unclaimed factional amount 2023, a trust managed by Axis Trustee Services Ltd, the bank said in a regulatory filing. HDFC Bank did not issue fractional shares, entitlements or rights to any shareholders of erstwhile HDFC Ltd. However, it said, all fractional entitlements were consolidated and rounded up to the next whole number of 2.80 lakh fully paid up equity shares and allotted directly to HDFC Bank Unclaimed factional amount 2023.

Distribution of Sale Proceeds

The Trustee completed the distribution of sale proceeds on October 13, after deducting the expenses incurred and applicable Income Tax, it said. The merger of HDFC Ltd with HDFC Bank was aimed at creating a larger and stronger financial institution with a wider range of products and services. The merger is expected to benefit both the banks' customers and shareholders.

The distribution of Rs 42.40 crore to fractional shareholders of HDFC Ltd is a significant step in the merger process. It reflects HDFC Bank's commitment to ensuring that all shareholders are treated fairly and equitably. The merger is expected to be completed by the end of the year, subject to regulatory approvals.