HDFC Bank allots over 311 crore new shares to HDFC shareholders

HDFC Bank on Friday said it has allocated over 311 crore new shares of the bank to shareholders of merged entity HDFC Ltd. The share allocation was done as per the swap ratio announced as part of the composite scheme of amalgamation. As per the scheme, every HDFC shareholder has got 42 shares of HDFC Bank for every 25 shares they hold.

Details of the allotment

Housing finance major HDFC merged with its subsidiary HDFC Bank on July 1 | Image Credit: PTI

"Accordingly, today HDFC Bank has allotted 3,11,03,96,492 new equity shares of Re 1 each of HDFC Bank in accordance with the share exchange ratio provided in the scheme, to/for such eligible shareholders of HDFC Limited who were holding shares as on the record date," the bank said in a regulatory filing.

The said equity shares allotted would be listed on the stock exchanges and rank pari passu in all respects with the existing equity shares of HDFC Bank, it said.

"Accordingly, the paid-up share capital of the bank will increase from Rs 559.17 crore consisting of 5,59,17,98,806 equity shares of Re 1 each to Rs 753.75 crore consisting of 7,53,75,69,464 equity shares of Re 1 each post cancellation of promoter holding of 1,16,46,25,834 equity shares," it said.

HDFC Bank has approved continuation of 1,47,57,600 warrants issued by HDFC Ltd in the name of bank as successor on the same terms and conditions, it said.

The $40 billion merger, the largest such deal in Indian corporate history, was driven by a changing regulatory landscape, which limited the advantages for HDFC continuing as a non-bank lending entity.