MUMBAI: With the listing of new shares, HDFC Bank on Monday hit a new milestone of entering a select group of global companies with a market capitalisation of over $100 billion. The country’s largest private lender’s market capitalisation on Monday reached $152 billion or Rs 12.66 lakh crore, making it the seventh largest lender globally, leaving financial service giants such as Morgan Stanley, Goldman Sachs, and Bank of China.
The lender scaled new heights in the domestic market also as it became the third-largest company after Reliance Industries and Tata Consultancy Services (TCS) in terms of market value. The market capitalisation of Reliance Industries reached Rs 18.92 lakh crore on Monday while TCS's market capitalisation stood at Rs 12.78 lakh crore.
HDFC Bank shares rose over 2% on Monday to close at Rs 1,679 on the BSE, with the listing of new shares of HDFC Bank issued to shareholders of parent HDFC Ltd. HDFC Bank on Friday allocated over 311 crore new shares of the bank to shareholders of merged entity HDFC Ltd.
HDFC was merged with its subsidiary HDFC Bank on July 1 after which shares of the mortgage lender were delisted from stock exchanges from July 12. The share allocation was done as per the swap ratio announced as part of the composite scheme of amalgamation.
As per the scheme, every HDFC shareholder has got 42 shares of HDFC Bank for every 25 shares they hold. Currently, JP Morgan is the largest bank, with a market cap of $438 billion, followed by Bank of America ($232 billion) and China’s ICBC ($224 billion).
Analysts are upbeat about HDFC Bank after the merger and have given buy ratings on the stock. “The entry of HDFC Bank into the $100 billion market capitalisation club is a remarkable milestone not only for the bank but also for the Indian banking industry as a whole.
It exemplifies the bank’s unwavering strength and resilience, highlighting its ability to thrive in a competitive market,” said Santosh Meena, Head of Research, at Swastika Investment. “This achievement underscores the promising future prospects for HDFC Bank.
The bank has consistently proven itself as a compounder, delivering robust financial performance over the years. The bank’s strong track record of success in stills confidence in investors, making it an attractive choice for long-term investment,” he added.
Merger boost for HDFC Bank
Market cap of HDFC Bank reached `12.66 lakh crore on Monday Globally the bank is now ahead of financial services giants like Morgan Stanley, Goldman Sachs, Bank of China in market cap HDFC Bank now ranks 3rd in Indian bourses in terms of market cap after RIL and TCS. HDFC Bank, on Friday, allocated over 311 crore new shares of the bank to shareholders of HDFC Ltd Every HDFC shareholder has got 42 shares of HDFC Bank for every 25 shares they hold