HDFC Bank top-traded NSE stock on first day post merger
₹3454.98 crore, surpassing ICICI Bank and Reliance Industries Ltd. On a day of high market volatility, with the Nifty fluctuating 181 points, the HDFC Bank stock ended 0.5% higher at ₹1641.10 apiece. So far in 2023, the HDFC Bank stock underperformed its peers and the 12- member Bank Nifty index, but analysts said it is likely to narrow the gap following its earnings call with investors as well as analysts.
“Investors are keenly awaiting the earnings call for clarity on the transition period, synergy benefits and cost saving," said Gaurav Dua, senior vice president and head of capital market strategy, Sharekhan by BNP Paribas. “If there is clarity, underperformance could narrow, but in the absence of clarity there will be pressure in the short term. We have a positive rating on the stock." While the stock has risen a mere 0.8% year to date, Bank Nifty has risen 3.91% to its closing of 44665.05 on Thursday.
Its market capitalization may rise to around ₹12.36 trillion, lower than the ₹18.59 trillion for RIL, once the stocks held by the shareholders of HDFC get listed in another 10-11 days, said Abhilash Pagaria, head of alternative and quantitative research, Nuvama Institutional Equities. However, the weightage of the merged stock at 14.4% will be the highest on the Nifty against RIL’s 10.8%. The market cap on Thursday was at ₹9.19 trillion.
HDFC shareholders will be allocated 1.68 shares of HDFC Bank for every share they hold. To illustrate, an investor holding 20 shares of HDFC will be granted 33 shares of the combined entity, besides an investment credit of 0.6 in her bank account at the prevailing price. Similarly, an investor with 55 shares will be entitled to get 92 shares of the merged entity, with 0.4 credited to
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