HDFC Bank’s shares end at Rs 1,641.3 apiece on first day of trading post-merger

According to market analysts, the merged entity’s market capitalisation will be in the range of Rs 12-14 lakh crore post the issuance of shares of HDFC Bank to holders of HDFC Ltd. This makes HDFC Bank the second-largest company in terms of market capitalisation after Reliance Industries Limited (RIL), which is currently valued at Rs 18.56 lakh crore.

HDFC Ltd had a market capitalisation of Rs 5.05 lakh crore while HDFC Bank’s reported a valuation of Rs 9.13 lakh crore on Wednesday. On July 12, the shares of HDFC Ltd closed at Rs 2,729.95 apiece, down 0.62 per cent, or Rs 17.05, on the BSE, while HDFC Bank’s stock settled at Rs 1,633 apiece, down 0.95 per cent, or Rs 15.65.

The merger of HDFC Ltd and HDFC Bank came into effect on July 1 and the record date for determining the shareholders of HDFC Ltd who would be allotted the shares of HDFC Bank was July 13. As part of the merger, HDFC Ltd shareholders will receive 42 shares of HDFC Bank for every 25 shares of HDFC Ltd.

The shares of HDFC Ltd ceased to exist on July 12, ending its 45-year-long journey on bourses.

“The merged entity will command a very high float because the promoter’s holding in the merged HDFC Bank will be zero. It will command a weight as high as 14.2 per cent in Nifty 50,” said Sriram Velayudhan, Head of Alternative Research, IIFL Securities.

The new HDFC Bank will surpass Reliance Industries Ltd in terms of weightage in Nifty, he said.

HDFC Bank’s weightage in Nifty Bank Index has increased to 29.1 from 26.9 earlier, according to Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.