HDFC Bank, HDFC Merger Creates India’s 2nd Biggest Company! Even Beats TCS In Total Market Cap

India’s largest bank, the HDFC Bank and HDFC shareholders will become 10% richer after the HDFC twin’s merger.

HDFC Bank and HDFC Merger

After the merger, the combined entity will be the second largest company in India by market capitalization, beating out the Tata group’s crown jewel, TCS.

On April 4, HDFC and HDFC Bank together had a combined market capitalization of Rs14 lakh crore, at the same time,  TCS’s market cap stood at Rs 13.95 lakh crore at 11:15 a.m..

Please note here that the HDFC Bank-HDFC merger has only been announced.

The regulatory approvals could take up to 18 months to complete the process.

Before the rally cooled off, the shares of HDFC and HDFC Bank hit highs of 15% and 14% respectively on April 4. 

The shares of the two companies were up 12% and 9%, respectively at 11:20 a.m. on Monday.

The shareholders of HDFC will receive shares in HDFC Bank – every 25 shares held in HDFC will fetch 42 shares in HDFC Bank as part of the merger scheme. 

This scheme is mainly beneficial for HDFC shareholders according to the closing price on April 1.

Here the entities, HDFC is the largest player when it comes to housing finance.

At the same time, HDFC Bank is the largest private-sector bank in the country.

Reliance Industries leads The Game

After this merger, the Mukesh Ambani-led Reliance Industries still remained the market leader by a huge margin.

Reliance Industries leads with a market capitalisation of Rs 18 lakh crore.

There is a staggering gap of Rs 4 lakh crore between the top two largest companies.

Still, the context is more than the market cap of giants like Kotak Mahindra Bank, Bharti Airtel, Wipro, ITC, among others.