SEBI: Approves Proposal for Change in Control of HDFC Capital Advisors as Part of Merger Process

SEBI: Approves Proposal for Change in Control of HDFC Capital Advisors as Part of Merger Process

The Securities Exchange of India (SEBI) has approved the proposal for change in control of HDFC Capital Advisors Limited (HCAL). SEBI vide its letter addressed to HCAL, a subsidiary of HDFC Limited and a co-investment portfolio manager, has granted its approval for the proposed change in control of HCAL, subject to certain conditions mentioned in the letter.

The proposed amalgamation was subject to receipt of final approvals from SEBI, in respect of change in control of certain subsidiaries of HDFC Limited.

According to the proposed composite scheme of amalgamation, HDFC Investments Limited and HDFC Holdings Limited, wholly-owned subsidiaries of Housing Development Finance Corporation Limited (HDFC Limited) would be first merged into HDFC Limited and subsequently into HDFC Bank.

HDFC has already received the required approvals from the SEBI, shareholders of HDFC Bank, Pension Fund Regulatory and Development Authority and the Competition Commission of India.

Further, the proposed entity will have a combined asset base of around Rs. 18 lakh crore.

The deal will result in HDFC Bank being 100% owned by public shareholders once it goes into effect, while the existing shareholders of HDFC Bank will own 41% of the company, once it is effective.

Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

With this approval, HDFC will be able to complete its merger into HDFC Bank in the third quarter of the financial year, which will enable HDFC to become HDFC Bank.