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After HDFC Ltd merged with it, shares of HDFC Bank rose 0.51 percent to close at Rs 1,641.3 per share on Thursday, the first day of trading for the combined entity.
The stock opened up 1.34 percent at 1,655 rupees each. It reached an intraday high of ₹1,656.8 and touched a low of ₹1,639 during the session.
According to market analysts, the market capitalization of the combined entity will be in the range of Rs 12-14 crore after the issuance of shares of HDFC Bank to the owners of HDFC Ltd. This makes HDFC Bank the second largest company by market capitalization after Reliance Industries Limited (RIL), which is currently valued at Rs 18.56 crore.
HDFC Ltd has a market capitalization of Rs 5.05 crore while HDFC Bank reported a valuation of Rs 9.13 crore on Wednesday. On July 12, shares of HDFC Ltd closed at 2,729.95 rupees per share, down 0.62 percent, or 17.05 rupees, on the Bahrain Stock Exchange, while shares of HDFC Bank settled at 1,633 rupees, down 0.95 percent, or 15.65 rupees.
The merger between HDFC Ltd and HDFC Bank came into effect on 1 July and the standard date for determining HDFC Ltd shareholders to whom shares of HDFC Bank will be allocated is 13 July. As part of the merger, HDFC Ltd shareholders will receive 42 shares of HDFC Bank for every 25 shares held in HDFC Ltd.
Shares of HDFC Ltd ceased to exist on July 12, ending their 45-year journey on the stock exchanges.
“The merged entity will get a very high float rate because the promoter’s stake in the merged HDFC Bank will be zero. It will get a weightage of up to 14.2 per cent in the Nifty 50,” said Sriram Velayudhan, Head of Alternative Research, IIFL Securities.
He said the new HDFC bank would overtake Reliance Industries Ltd by weight in Nifty.
HDFC Bank’s weight in the Nifty Bank Index rose to 29.1 from 26.9 previously, according to Abhilash Bagaria, head of Nuvama Alternative & Quantitative Research.
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