JSW Steel Replaces HDFC in BSE Sensex Following HDFC Bank Merger

6 Jul 2023 , 01:31 PM

JSW Steel, a leading steel producer in India, is set to replace Housing Development Finance Corporation (HDFC) in the S&P BSE Sensex, according to an announcement by the bourse. The change will be effective from July 13.

This reshuffling in the index is a result of the completion of the significant corporate merger between HDFC and HDFC Bank.

The removal of HDFC Ltd. from all other BSE indices will also take effect from July 13. The release from the exchange reveals that TVS Motor Company and Apollo Tyres have been removed from some indices as well.

On the Nifty 50 index, LTIMindtree, a subsidiary of engineering giant Larsen & Toubro, will replace HDFC starting from July 13.

The merger between HDFC Bank and HDFC officially came into effect on July 1. The boards of both entities have designated July 13 as the record date to determine eligible shareholders for share allotment under the merger agreement.

As per the merger terms, eligible HDFC shareholders will receive 42 new HDFC Bank shares for every 25 shares they held in the former. The decision to merge HDFC Bank and HDFC was initially announced on April 4, 2022, following approvals from the respective boards, shareholders, and regulatory authorities.

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