Sebi Grants Final Approval For Proposed Change In Control Of HDFC AMC: HDFC Bank

May 10, 2023 | Author: News Desk

 HDFC Bank on Wednesday said markets regulator Securities and Exchange Board of India (Sebi) has granted its final approval for the proposed change in control of HDFC AMC.

This approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of the next financial year.

Sebi, through its letter dated May 10, 2023 to HDFC Asset Management Company Limited, a subsidiary of HDFC Ltd and the investment manager of HDFC AMC AIF II, has granted its final approval for the proposed change in control of HDFC AMC, the private sector lender said in a stock exchange filing.

This approval will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of the next financial year.

HDFC Ltd posted a 20% year-on-year growth in standalone net profit in the March quarter to ₹4,425 crore, on the back of higher income. The company’s total operating revenue surged 36% from a year ago to ₹16,679 crore.

An interim dividend of ₹44 per share for FY23 has been approved by the company’s board.

HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion.

The proposed entity will have a combined asset base of around ₹18 lakh crore.

Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank.