The country's largest housing finance company HDFC Ltd on Friday said the National Company Law Tribunal (NCLT) has given approval for the merger of HDFC Property Ventures and HDFC Venture Capital with HDFC Capital Advisors.

Share Market Live

NSE

The NCLT sanctioned a composite scheme of amalgamation of HDFC Property Ventures and HDFC Venture Capital into HDFC Capital Advisors, HDFC said in an exchange filing.

The amalgamation will result in simplification, streamlining and optimisation of the group structure and efficient administration, the order said.

Also Read: Anil Agarwal refuses to budge on zinc assets sale, says bond payments going strong

Early this week, the tribunal reserved the order for its approval of the HDFC and HDFC Bank merger after the parties sought 180 days more for the process.

HDFC has already received the required approvals from the Securities and Exchange Board, shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority, and the Competition Commission of India.

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.

Also Read: Adani stake sale | Meet Rajiv Jain of GQG Partners, the man behind the Rs 15,446-cr move

The proposed entity will have a combined asset base of around Rs 18 lakh crore. Once the deal is effective, HDFC Bank will be 100 percent owned by public shareholders, and existing shareholders of HDFC will own 41 percent of the bank.

Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

(Edited by : Pradeep John)