LTIMindtree, the merged entity of Larsen & Toubro Infotech (LTI) and Mindtree, will replace Housing Development Finance Corporation (HDFC) from Nifty 50 index on July 13, following the amalgamation of the country’s largest mortgage lender with HDFC Bank. Shares of HDFC will delist from stock exchanges on July 13 and will begin trading under the HDFC Bank ticker.
The decision was taken at the board meeting of the Index Maintenance sub-committee (Equity) of NSE Indices on Tuesday after HDFC twins were merged effective from July 1.
"The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited has decided to make replacement of stock in various indices as listed hereunder on account of scheme of amalgamation of Housing Development Finance Corporation Ltd. with HDFC Bank Ltd. These changes shall become effective from July 13," the National Stock Exchange (NSE) said in a release on Tuesday.
With a market capitalisation of ₹1.55 lakh crore, LTIMindtree, a part of Larsen & Toubro group, is the country's fifth-largest IT services provider by market cap after Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies. Last December, the L&T Group companies Larsen & Toubro Infotech (LTI) and Mindtree were merged to create one of the largest in the Indian IT sector, in a share swap deal at a ratio of 73 shares of LTI for every 100 shares of Mindtree. Parent company L&T holds a 68.69% stake in the merged entity.
Currently, LTI Mindtree is part of the Nifty Next50 index. From July 13, Jindal Steel and Power will replace it in Nifty Next 50.
In the Nifty 100 index, HDFC will be replaced by Jindal Steel, and by Mankind Pharma in the Nifty 500 index. Delhi-based pharma major Mankind Pharma, which recently made its debut on the stock exchanges, has also been included in several other Nifty indices including Nifty Midcap 150, Nifty Midcap 100, and Nifty 200.
Meanwhile, HDFC will be replaced by LIC Housing Finance in Nifty Financial Services, Ambuja Cements in Nifty High Beta 50, Poonawalla Fincorp in Nifty Financial Services Ex-Bank, Phoenix Mills in Nifty Housing, and Brigade Enterprises in Nifty Core Housing.
Post July 13, HDFC shares will begin trading under HDFC Bank ticker and the existing shareholders of the mortgage lender will receive 42 shares of HDFC Bank for every 25 shares they hold. The record date for the share swap between HDFC and HDFC Bank shareholders is July 13, 2023.
The two listed subsidiaries of HDFC - HDFC Life Insurance Company and HDFC Asset Management Company - have also become subsidiaries of HDFC Bank with effect from July 1, 2023. Besides, two insurance companies - HDFC Life Insurance Company and HDFC Ergo General Insurance Company - have also become subsidiaries of HDFC Bank post merger. HDFC Bank has also become co-sponsor of HDFC Mutual Fund, in place of HDFC with effect from July 1, 2023.
Post the amalgamation, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank. The merger is touted to be the biggest transaction in India's corporate history and the proposed entity will have combined assets of nearly ₹15 lakh crore, which will be the second largest after Reliance Industries (₹17.63 lakh crore).