“The eligibility screenings for HDFC Bank will be assessed in the subsequent quarterly review, including liquidity and minimum foreign headroom requirement screens as a constituent, as well as reviewing shares and Foreign Ownership Restriction attributed to the HDFC Bank prior to the merger,” FTSE said in a release.
In non-market capitalisation weighted indices such as the FTSE RAFI index series, HDFC will be deleted from the index, but HDFC Bank will not be added to the index, FTSE said.
FTSE Russell will issue further notice once the effective date of the merger becomes available, it said. Earlier this week, HDFC management shared tentative deadlines for the completion of the merger, saying it would come into effect from July 1 after separate board meetings of HDFC twins on Friday.
The record date would be announced later and HDFC is likely to be delisted from stock exchanges in mid-July. According to the merger terms, eligible shareholders of HDFC will receive 42 new HDFC Bank shares for every 25 shares held by them in the former.
A tentative date was shared by the management following receipt of all the statutory approvals for the merger. Announced in April 2022, the merger of HDFC Bank and HDFC Ltd will create the fifth largest lender in the world.
Dalal Street investors have been eagerly awaiting the completion of the mega merger. On Wednesday, shares of HDFC Bank ended nearly 1% higher at Rs 1,673.10, and those of HDFC closed 0.6% higher at Rs 2,777.95.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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