HDFC Bank-HDFC Share Update: On April 4, 2022, as soon as the news came that HDFC and HDFC Bank would merge. Investors invested in both the financial institutions blossomed. The stock market jumped on hearing this news. Due to which there was a historic increase in the shares of HDFC and HDFC Bank. But after the arrival of this news, in the last two weeks, the shares of both the financial institutions of HDFC Group fell so sharply that investors are now facing heavy losses. The market capitalization of both the companies has come down by more than Rs 2.70 lakh crore since April 4.
On April 4, the day the news of the merger of ADFC with HDFC Bank came out, the market capitalization of HDFC Bank reached Rs 9.18 lakh crore due to a tremendous jump in the stock. So the market capitalization of HDFC reached Rs 5 lakh crore. Add both the companies, their value increased to more than Rs 14.18 lakh crore. But since this news came to the fore, investors have been continuously selling the shares of both the financial institutions. After which the market capitalization of both the companies has come down to Rs 11.45 lakh crore. That is, the market value of both the companies has been breached by more than Rs 2.70 lakh crore.
The announcement of this historic merger had changed the equations of the stock market. Combining the two HDFC giants, TCS was among the second largest companies in the stock market in terms of market capitation. After the tremendous jump in the shares of both HDFC Bank and HDFC after the announcement of the merger, Tata Consultancy Services (TCS) became the second largest company in terms of market capitation, beating them. But TCS has again become the second largest company. Its market cap is currently Rs 12.91 lakh crore. In terms of market cap, Reliance Industries is the number one company in the country with Rs 17.86 lakh crore.
HDFC Bank had said on April 4 that the merger plan is subject to various regulatory approvals, including from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Under the proposed deal, for every 25 equity shares of HDFC Ltd, 42 equity shares of HDFC Bank will be received. The proposed transaction will help HDFC Bank to build its home loan portfolio and grow its existing customer base.
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