The outstanding warrants issued by HDFC Ltd will be listed and traded on HDFC Bank’s behalf after the merger with the bank, and with the Sebi having relaxed a relevant rule on the listing of such warrants post the merger as stated by the lender in a filing to the stock exchanges. The merger is expected to complete next month.
HDFC Bank said it was informed by BSE and NSE that Sebi had granted its relaxation from applicability of Rule 19(2)(b) of the SCRR, subject to certain conditions.
After the effective date of the merger and the listing of stock acquisition rights in the name of HDFC Bank, the two companies will continue to trade in the name of HDFC Bank as of the trading date for such listing. The warrant holders will be entitled to exchange warrants for equity shares of HDFC Bank on the basis of share exchange ratio as per the Scheme, till August 10, 2023.
Rule 19 of the SCRR pertains to the various requirements that a company ought to ensure for the listing of its securities on a recognised stock exchange and prescribes the following minimum offer and dilution requirements for listing any class of equity shares.
The bank in its filing stated, “In relation to the outstanding listed warrants that have been issued by HDFC Limited and which will continue in the name of HDFC Bank on the effective date of the Scheme (“Effective Date”), HDFC Bank had, in relation to the proposed listing of warrants in the name of HDFC Bank, made an application to Securities and Exchange Board of India (“SEBI”) through the stock exchange under Rule 19(7) of SCRR for relaxation of strict enforcement of Rule 19(2)(b) of the SCRR.”
It was further added that, “In this regard, we would like to inform you that BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) , vide their letters dated June 21, 2023, has informed HDFC Bank that SEBI vide its letter dated June 21, 2023 has granted relaxation from applicability of Rule 19(2)(b) of the SCRR, subject to certain conditions mentioned therein.”