Banking: With a $151 bn market cap, HDFC Bank is now the world’s seventh largest
Virendra Pandit
New Delhi: With a market capitalization of over USD 151 billion, HDFC Bank, India’s largest private sector lender, has become the world’s seventh-largest bank, leaving behind Morgan Stanley, Goldman Sachs, and Bank of China.
This happened days after its recent merger with HDFC Ltd, the media reported on Monday.
Following the listing of new shares of HDFC Bank issued to shareholders of parent company HDFC Ltd, after the USD 40 billion reverse merger, it has entered into the exclusive club of global companies with a market capitalization of USD 100 billion and more.
On Monday, HDFC Bank was trading at a market value of around USD 151 billion (Rs. 12.38 lakh crore).
In terms of market capitalization, HDFC Bank is next to JP Morgan (USD 438 billion), Bank of America (USD 232 billion), the Industrial and Commercial Bank of China or ICBC (USD 224 billion), the Agricultural Bank of China (USD 171 billion), Wells Fargo (USD 163 billion), and HSBC Bank (USD160 billion).
After the merger, HDFC Bank’s market capitalization surpassed that of major global investment firms like Morgan Stanley (USD 143 billion) and Goldman Sachs (USD 108 billion).
The USD 40 billion mega-merger, in which HDFC Bank acquired the parent entity HDFC Ltd., came into effect on July 1, 2023. On Monday (July 17), the HDFC Bank stock started trading as a merged entity. Shares of HDFC Ltd were delisted from the stock exchanges on July 13.
On July 14, HDFC Bank allotted 3,11,03,96,492 new equity shares of face value of Re. 1 each, to eligible shareholders of HDFC Ltd under the all-stock merger deal where every HDFC shareholder received 42 shares of HDFC Bank for every 25 shares held in the company.
In terms of market value on the Bombay Stock Exchange (BSE), HDFC Bank has become the third-largest Indian company after Reliance Industries (Rs 18.6 lakh crore) and TCS (Rs 12.9 lakh crore).
