HDFC Bank enters $100 billion m-cap club, but fails to pip TCS as number 2 stock
Reliance Industries (RIL) and IT major Tata Consultancy Services (TCS), sitting on the third position with a market cap of ₹12.43 lakh crore. The m-cap of RIL is over ₹18.85 lakh crore, while that of TCS is around ₹12.94 lakh crore. With a market value of over $151 billion, HDFC Bank is now the world’s seventh largest lender.
It has grown bigger than Morgan Stanley, Goldman Sachs and Bank of China, according to data on companiesmarketcap.com. In the list of biggest banks in the world as per market capitalisation, HDFC Bank is just behind JPMorgan, Bank of America, China's ICBC, Agricultural Bank of China, Wells Fargo and HSBC, companiesmarketcap.com data showed.
Also Read: HDFC Bank Q1 Result: HDFC Bank Q1 net profit rises 30% YoY to ₹11,952 crore; NII jumps 21% On July 13, shares of mortgage lender Housing Development Finance Corporation (HDFC) got delisted from Indian bourses after its $40 billion worth reverse merger deal with HDFC Bank. As per the share exchange ratio of the merger, for every 25 shares of HDFC, 42 shares of HDFC Bank were issued to the former’s shareholders. Meanwhile, TCS share price has seen a sharp rally in the last week after the IT giant announced its June quarter results.
TCS stock price rallied nearly 8% in the last one week, taking its market capitalization to above ₹12.8 lakh crore on Friday. On the other hand, analysts believe HDFC Bank shares can see more upside after the merger. JPMorgan assigned an 'overweight' rating on the stock, pegging the target price at ₹2,000, citing the merger of HDFC with HDFC Bank is positive from a medium-term perspective.
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