HDFC Bank to replace HDFC in FTSE All-World index July 13; HDFC to exit all indices

economictimes.indiatimes.com:

HDFC Bank will replace Housing Development Finance Corporation in FTSE All-World index, effective July 13, following the completion of the merger of the two entities, the global index aggregator said. HDFC Bank will be added to the index with a total of 3,082,056,076 shares, and an investability weighting of 95.98%, FTSE Russell said in a release. HDFC Bank will remain a part of the FTSE MPF-All World, FTSE Global Large Cap, and FTSE Emerging indices, while HDFC will be deleted from these indices.

HDFC Ltd will also be deleted from All-World Comprehensive Factor, All-World ex CW Balanced Factor, and All-World ex-CW Climate Balanced Factor indices, the index aggregator said. Earlier this month, FTSE had said it will review the eligibility criteria for adding HDFC Bank post the merger in its next quarterly review meeting. “The eligibility screenings for HDFC Bank will be assessed in the subsequent quarterly review, including liquidity and minimum foreign headroom requirement screens as a constituent, as well as reviewing shares and Foreign Ownership Restriction attributed to the HDFC Bank prior to the merger,” it had said.

Back home, both BSE and the National Stock Exchange will suspend trading in shares of HDFC, effective July 13. The merger of HDFC Bank and HDFC came into effect from July 1. Under the merger terms, eligible shareholders of HDFC will receive 42 new HDFC Bank shares for every 25 shares held by them in the former.