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: