Chairman of Housing Development Financial Corporation Mr Deepak Parekh has shared his keynote address post the highly anticipated merger that was finalized recently. The merger will be the largest transaction in the history of India as HDFC bank will take over its parent firm in a $40 billion all stocks deal.
With the merger, HDFC will join the ranks of the world’s most valuable banks. Parekh highlighted this achievement: “FY23 marked a year of many happenings. We have been working relentlessly on the merger, whilst continuing to focus on ‘business as usual’. He also shared that India’s GDP is likely to double when compared to the global economy and has demonstrated resilience.
Deepak Parekh has said he ‘hung his boots’ ahead of the merger and announced that June 30 would be his last working day after spending 46 years with HDFC.
The Indian housing finance sector is growing, and more growth is expected to be seen in the sector in the upcoming year, he said.
Deepak Parekh shared his thoughts on the recent merger he said, “when we announced the merger, we knew it was hard to meet the deadline to meet.” He said that the immense goodwill and strong relationships paved the way for the merger to take place successfully. CCI, NCLT, the shareholders and regulators were important milestones in the merger.
He assured that in all the dealings related to merger HDFC group has been treated in just and fair manner and said that the merger between HDFC and HDFC bank is received well by the shareholders. Deepak Parekh said that it is important to know the biggest risk organizations face today is staying with the status quo, believing “what worked today will continue in the future”.
He thanked all the directors and highlighted that good governance has been cornerstone of the group and with the new era that HDFC will enter the group will open new opportunities and strong leadership and team building.
Once the deal comes into effect, HDFC bank will be completely owned by public shareholders and the current shareholders of HDFC will own 41% of the bank. Every shareholder will receive 42 shares of HDFC bank for every 25 shares they hold. The combined value of HDFC twin shares will be the highest at 14%, much more than the present highest Reliance industries at 10.4% weightage.