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Mega Merger (HDFC Ltd and HDFC Bank) Important dates

On June 30, the Boards of HDFC Limited, a leading housing finance company, and HDFC Bank, one of India's largest private sector banks, approved the effective date of merger as July 1, 2023, and fixed July 13, 2023, as record date for determining the shareholders of HDFC Ltd. That means, those who hold HDFC Ltd shares as on record date of 13thJuly 2023 will receive 42 shares of HDFC Bank for every 25 shares of HDFC Ltd a ratio of 1:1.68.

 

To make it simple for you, HDFC Ltd. shareholders will get HDFC Bank shares round down to 1.68 times the quantity held in HDFC Ltd. shares and the fractional shares shall be settled in cash.

For example:

  1. If the shareholder is having 20 shares of HDFC he is entitled to get 33.6 shares of HDFC bank. As the shares cannot be held in fractions, 33 shares will be credited to him and remaining 0.6 will be given to him in cash.

  2. If the shareholder is having 27 shares of HDFC he is entitled to get 45.36 shares of HDFC bank. As the shares cannot be held in fractions, 45 shares will be credited to him and remaining 0.36 will be given to him in cash.

 

Impact of the Merger on various products offered by ICICIdirect.com

 

Margin Funding (MTF)

Creating fresh positions in HDFC Ltd will be disabled from Friday, July 7, 2023 and open positions will be squared off in MTF on July 11, 2023.

 

Shares as Margin (SAM)

Shares as margin will be disabled in HDFC Ltd. from 5thJuly, 2023 EOD. The limits which you get will be reduced in phased manner and will eventually no limits will be available for HDFC Ltd w.e.f 10th July 2023. This shall be implemented by increasing the Haircut of HDFC Ltd for Shares as Margin as below:

July 05, – 25%,

July 06 – 50%,

July 07 – 75% and

July 10 – 100%.

NOTE - Since the limit from SAM for HDFC Ltd. will be reduced to ZERO, your overall margin through SAM may also get reduced. Please ensure that adequate margins are available for all Open Positions.

 

ESOP

The new shares of HDFC bank will get auto pledge. Client will be able to see HDFC Bank shares in ESOP funding section w.e.f Friday EOD i.e., 14th July 2023 EOD.

 

Futures and Options

As per exchange circular dated July 4, 2023 the existing contracts of expiry months July 2023, August 2023 and September 2023 will expire on July 12, 2023.

All positions in HDFC ltd will be squared off on 12th July – Options at 12 PM and Futures at 2.30 PM.

F&O intraday in HDFC Ltd will be disabled from July 11, 2023 EOD.