Headline
The 2nd Largest Company Chasing after SBI: HDFC Bank is Merging with HDFC Ltd
Top Story MilkywayBlogs 05-Apr-2022 Comments (0) 4

The 2nd Largest Company Chasing after SBI: HDFC Bank is Merging with HDFC Ltd

HDFC Bank and HDFC Ltd announced that the merger process between both of them is a USD 40 billion deal that is going to create a huge financial output. The merging process of HDFC Bank and HDFC can create them the second largest company in India with market capitalization, leaving behind Tata Consultancy Services (TCS), the crown jewel of the Tata group.

The chairmen of HDFC ‘Deepak Parekh’ termed this as a ‘merger of equals’ which is going to also benefit the economy in the long run, as well as the capital base, will also allow a greater flow of credits into various sectors. The merging process between India’s most valuable private lender and the country’s largest mortgage lender becomes the largest transaction in the nation’s corporate history.

HDFC VS TCS

According to the PTI’s report, the HDFC twins will now have a combined m-cap market capitalization of Rs 13.99 lakh crore and the exceeding value for TCS of Rs 13.94 lakh crore 

First, let’s see about their valuations:

HDFC VALUATION

  1. The entity proposed by others is going to have a combined asset base of around Rs 18 lakh crore. The merging process is expected to be completed by the second or third quarter of FY24.
  2. The combined balance sheet is going to have Rs 17.87 lakh crore and have the net worth is going to be Rs 3.3 lakh crore, as of December 2021 balance sheet.
  3. Chief executive and managing director of HDFC Bank ‘Sashidhar Jagdishan’ said that the value of the proposed deal is USD 40 billion.
  4. The present value of the HDFC is USD 60 billion. The portion of their (HDFC) holding in HDFC Bank comes to USD 40 billion and that’s the value of the deal.

Leave A Reviews

Leave a Reply

Your email address will not be published. Required fields are marked *