HDFC twins merger impact: Five changes that will take place after HDFC's exit from bourses
Housing Development Finance Corporation (HDFC) merged with its subsidiary HDFC Bank on July 1, 2023, following which shares of HDFC ceased to exist on bourses from Thursday, July 13. The HDFC, HDFC Bank merger created the world's fourth largest bank of the world after JP Morgan Chase & Co, Industrial and Commercial Bank of China Ltd (ICBC) and Bank of America Corp. After this merger, HDFC Securities, HDFC AMC, HDFC Ergo GIC, HDFC Capital Advisors and HDFC Life Insurance have become the key subsidiaries of HDFC Bank.
Existing shareholders of HDFC will own about 41 per cent stake in HDFC Bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold. Here are the five key changes that will happen after HDFC's exit from bourses: 1.
Change in weight of HDFC Bank in Nifty50: According to an analysis by Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, the revised weight of HDFC Bank will be 14.43 per cent in the Nifty50 index which will be the highest weight of any single constituent in the index. 2. Change in weight of HDFC Bank in Nifty Bank: As per Pagaria, HDFC Bank will see an upward weight revision to 29 per cent from 27 per cent in the Nifty Bank index.
3. Changes in Sensex, Nifty: As HDFC shares ceased to exist, shares of LTIMindtree took their place in the Nifty50 index while in the Sensex index, JSW Steel replaced HDFC. Jindal Steel entered the Nifty Next 50 index after the exit of LTIMindtree from it.
4. The impact on Bank Nifty, Nifty: HDFC Bank has now the highest weight in Nifty which means its movement will significantly influence the performance of both Nifty and Bank Nifty. The stock, along with the stock of Reliance Industries, will have a heavy impact on how
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