HDFC Asset Management Company (HDFC AMC) received approval from the Securities and Exchange Board of India (Sebi) for a change in its control on account of the amalgamation of HDFC Ltd and HDFC Bank Ltd.
"We wish to inform you that pursuant to the company's application under the Sebi (Portfolio Managers) Regulations, 2020 (PMS Regulations), Sebi has granted its final approval for change in control of the company, on account of the amalgamation of Housing Development Finance Corporation Limited with and into HDFC Bank Limited; subject to compliance with the applicable provisions of PMS Regulations, circulars thereto," it said in a filing.
Earlier in April, the company announced that the merger will be completed by July this year. Once merged, the proposed entity will have a combined asset value of around Rs 18 trillion.
After the merger, existing shareholders of HDFC will own 41 per cent of the bank. On the other hand, HDFC Bank will be 100 per cent owned by public shareholders. HDFC shareholders will get 42 shares of HDFC Bank for every 25 shares they hold.
The SBI Funds Management Ltd got approval from the Reserve Bank of India (RBI) to acquire a 9.99 per cent stake in HDFC Bank Ltd by November 15.
In another regulatory filing earlier this month, the HDFC Bank said the RBI has given its approval to SBI Funds Management for acquiring up to 9.99 per cent of the paid-up share capital or voting rights of the bank.
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HDFC Bank said SBI Funds Management has to ensure that the aggregate holding in the bank remains below 10 per cent of the paid-up share capital or voting rights of the bank at all times.
