HDFC Bank to replace HDFC on MSCI global standard index from July 13
Housing Development Finance Corporation (HDFC) on the MSCI Global Standard indexes from July 13, following the mega-merger of two firms, according to an MSCI notice published on Friday. HDFC and HDFC Bank completed their $40 billion merger - the largest in India's corporate history on July 1 and have set July 13 as the "record date" for shareholders to swap HDFC's shares with those of HDFC Bank.
The foreign shareholding in the combined entity would be at about 60 per cent-62 per cent, allowing the bank to be added to the MSCI index for the first time since 2013, according to news agency Reuters. The share price of both companies declined in May after MSCI said that it would use an adjustment factor of 0.50 to compute the weightage of the merged entity, which Nuvama Research estimated would likely lead to a combined outflow of $150-$200 million.
HDFC Bank's shares are up two per cent so far this year, while HDFC's shares have gained five per cent, but are both underperforming the blue-chip Nifty 50. This copy is being updated.
Read more on livemint.com
