Bank Nifty climbs over 3% after HDFC, HDFC Bank announce merger

Banking shares were the top gainers in early trade after the HDFC and HDFC Bank announced a merger. BSE bankex zoomed up to 1,478 points to 44,074 against the previous close of Rs 42,596, translating into a gain of 3.46% in early trade. Bank Nifty too climbed 3.28% or 1221 points to Rs 38,369 against the previous close of Rs 37,148.

Shares of HDFC and HDFC Bank were the top Sensex and Nifty gainers today. HDFC stock hit upper circuit of 15% or Rs 367.60 to Rs 2818.55 in early trade on BSE. Similarly, HDFC Bank stock rallied 13.925 to Rs 1715.95 against the previous close of Rs 1506.30 on BSE.

Also read: HDFC, HDFC Bank shares zoom 10% on merger announcement

"Shareholders of HDFC Limited as on the record date will receive 42 shares of HDFC Bank (each of face value of Re.1), for 25 shares held in HDFC Limited (each of face value of Rs.2), and the equity share(s) held by HDFC Limited in HDFC Bank will be extinguished as per the Scheme. As a result of this, upon the Scheme becoming effective, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC Limited will own 41% of HDFC Bank," the companies stated.

Meanwhile, powered by a rally in banking stocks, Sensex and Nifty logged a strong upside in early trade today. While Sensex climbed 1537 points to 60,814, Nifty rose 400 points to 18,070.

HDFC, HDFC Bank, HDFC Life, Bajaj Finance were the top Nifty gainers. On Sensex, HDFC, HDFC Bank, NTPC, Bajaj  Finance and Bharti Airtel were the top gainers, rising up to 15%.

ALSO READ: HDFC to merge with HDFC Bank