HDFC-HDFC Bank merger: HDFC Ltd's F&O contracts to expire on July 12, says NSE

National Stock Exchange (NSE) on Wednesday said all futures & contracts (F&O) contracts in Housing Development Finance Corporation Ltd will expire on July 12 as the mortgage financier will merge with HDFC Bank on July 13. 

"All existing monthly and weekly contracts in the underlying HDFC contracts with expiry dates post July 12, 2023, shall expire on July 12, 2023. 2. The settlement price to be reckoned for the purpose of final settlement shall be settlement price of security HDFC in the Capital Market segment, on July 12, 2023," said NSE in a press release. It is to be noted that F&O contracts on individual stocks for the month of July will expire on July 27.

HDFC Ltd's scrip on BSE closed nearly 3% lower at Rs 2,796.4.

"All positions in the existing futures and options contracts on the underlying HDFC shall cease to exist pursuant to the final settlement on July 12, 2023, and will result in physical settlement," said NSE. 

On Tuesday, NSE said HDFC Ltd will be replaced by LTMindtree on the coveted Nifty50 index.

Post-merger, HDFC Bank became the fourth most valued lender in the world, and narrowed the gap by asset size with state-owned SBI to be the second largest Indian bank.

The total business of the merged entity stood at Rs 41 lakh crore at the end of March 2023. With the merger, the networth of the entity would be over Rs 4.14 lakh crore.

With the deal getting effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

The board of directors of HDFC Bank in consultation with the board of directors of HDFC Limited has fixed July 13, 2023, for determining the shareholders of HDFC Ltd, who would be issued and allotted the shares of HDFC Bank.

Besides, July 13 has been fixed for the continuation of warrants of HDFC Limited in the name of HDFC Bank.

The board has fixed July 12, 2023, for the transfer of non-convertible debentures while July 7 for the transfer of commercial papers of HDFC Ltd in the name of HDFC Bank.