HDFC Bank disburses Rs 42 crore to HDFC Ltd.'s fractional owners

23 Oct 2023 , 06:42 AM

On Thursday, HDFC Bank announced that it has disbursed Rs 42.40 crore to HDFC Ltd.’s fractional owners via a trust established following the company’s merger with its parent. On July 1, 2023, HDFC Bank and HDFC Ltd underwent a reverse merger.

In accordance with the Composite Scheme of Amalgamation, for every 25 equity shares of Rs 2 each that are fully paid-up that such shareholders hold in HDFC Ltd as of the record date of July 13, 2023, HDFC Bank will issue and allot to eligible shareholders 42 new equity shares of the face value of Re 1 each, credited as fully paid-up.

According to a regulatory filing by the bank, the fractional entitlements were aggregated, and the total of those fractions was rounded up to the next whole number and given straight to the trust known as ‘HDFC Bank Unclaimed factional amount 2023,’ which is run by Axis Trustee Services Ltd.

No stockholders of the former HDFC Ltd. received fractional shares, entitlements, or rights from HDFC Bank. That said, however, all fractional entitlements were combined, rounded to the next whole number, and directly assigned to the ‘HDFC Bank Unclaimed factional amount 2023’, or 2.80 lakh fully paid up equity shares. After subtracting the incurred costs and any relevant income tax, the Trustee finished distributing the sale profits on October 13, according to the statement.

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