MUMBAI: Housing Development Finance Corporation (HDFC) has received approval from the National Housing Bank (NHB) for a scheme of amalgamation that would result in the merger of the mortgage company with its banking arm. The NHB is the regulator for all housing finance companies.
HDFC said in a stock exchange filing that the NHB, in its letter dated August 8, has granted its no-objection to the scheme, as required pursuant to the refinance facilities availed by the housing financier from NHB. HDFC and HDFC Bank had earlier received approvals or no-objection letters from the NSE & the BSE, the RBI and Sebi. “The scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Competition Commission of India, the NCLT and the respective shareholders and creditors of the companies involved in the scheme as may be required,” the company said.
The scheme of amalgamation involves merger of HDFC’s subsidiary companies — HDFC Investments and HDFC Holdings into HDFC. In the second stage, the amalgamated entity will merge with HDFC Bank and all subsidiaries of the housing finance company will convert into subsidiaries of the bank. Besides approvals for the merger, HDFC Bank will be seeking permission from the regulator to hold a stake above 51% in the insurance arms HDFC Life and HDFC Ergo General Insurance.
HDFC said in a stock exchange filing that the NHB, in its letter dated August 8, has granted its no-objection to the scheme, as required pursuant to the refinance facilities availed by the housing financier from NHB. HDFC and HDFC Bank had earlier received approvals or no-objection letters from the NSE & the BSE, the RBI and Sebi. “The scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Competition Commission of India, the NCLT and the respective shareholders and creditors of the companies involved in the scheme as may be required,” the company said.
The scheme of amalgamation involves merger of HDFC’s subsidiary companies — HDFC Investments and HDFC Holdings into HDFC. In the second stage, the amalgamated entity will merge with HDFC Bank and all subsidiaries of the housing finance company will convert into subsidiaries of the bank. Besides approvals for the merger, HDFC Bank will be seeking permission from the regulator to hold a stake above 51% in the insurance arms HDFC Life and HDFC Ergo General Insurance.