SEBI Granted Approval For The Transfer Of Controlling Stake Of HDFC AMC to HDFC Bank

On Friday, HDFC Ltd revealed that the Securities and Exchange Board of India (SEBI) has granted its approval for the intended transfer of majority ownership in HDFC Asset Management Company Limited (HDFC AMC) to HDFC Bank, as a part of the amalgamation plan.

In a regulatory filing, HDFC Ltd stated that Sebi has granted its approval for the change in control of HDFC AMC, which is a subsidiary of HDFC Limited and the asset management company of HDFC Mutual Fund (HDFC MF), through a letter dated April 21, 2023.

HDFC AMC has received guidance from the regulator to ensure full compliance with Sebi (Mutual Funds) Regulations, 1996, and circulars, in addition to the approval for the merger of HDFC and HDFC Bank.

The merger, anticipated to be completed by the third quarter of the upcoming financial year, is being hailed as the largest transaction in India's corporate history.

This deal, valued at approximately USD 40 billion, will result in the creation of a formidable financial services giant, as HDFC Bank takes over the largest domestic mortgage lender on April 4 of the previous year.

The estimated business will have close to Rs 18 lakh crore in total assets.

Existing HDFC shareholders will control 41% of the bank after the agreement is in place, making public shareholders the only owners of HDFC Bank.

A shareholder will receive 42 shares of HDFC Bank for every 25 HDFC shares they own.