Shares of HDFC rose 5.84 per cent to close at Rs 2,651, while that of HDFC Bank soared 5.62 per cent to finish at Rs 1,611
Shares of HDFC Bank and parent Housing Development Finance Corp (HDFC) jumped more than 5 per cent each on optimism that their amalgamation will attract higher capital flows from passive trackers than previously anticipated.
The optimism follows a rule tweak by global index provider MSCI on treatment of stocks M&A-bound in its indices. M&A stands for merger and acquisition.
“MSCI has come up with new rules on how to handle corporate events like M&A and that will remove the technical overhang of HDFC Bank. What these new rules imply is that HDFC Bank will be considered as an extension of HDFC post the merger and the foreign headroom requirement will be that of an existing constituent. The net impact will
First Published: Nov 11 2022 | 6:37 PM IST