Big merger Theory!

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 5th July 2023 - 12:47 pm

Listen icon

Introduction

The recent merger between HDFC Bank and its parent company, HDFC, has propelled HDFC Bank to become one of the world's top 10 banks by market capitalization. The combined entity now has a market capitalization of around 12.5 lakh crore, surpassing major global lenders such as Morgan Stanley and HSBC Holdings. And also merged IDFC First Bank, similar to HDFC Bank, will have no promoter entity and will be fully owned by institutional and public shareholders.

When a subsidiary company merges with its parent company, it is referred to as an "internal" or "vertical" merger. 

What will be the impact of this move?

Analysts view HDFC Bank's valuation as attractive and anticipate accelerated loan growth.

With the increased market capitalization and growth potential, this merger presents an intriguing opportunity for those interested in the banking sector.

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Top Energy ETFs in India - Best Funds to Invest

by 5paisa Research Team 11th Dec 2024

Top 5 Nifty 50 ETFs in India by Returns

by 5paisa Research Team 11th Dec 2024

Top Multibagger Stocks for the Next 5 Years in India

by 5paisa Research Team 4th Dec 2024

Top Growth Stocks Trading at a Discount

by 5paisa Research Team 4th Nov 2024

Best Gold ETFs in India

by 5paisa Research Team 22nd Nov 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form