Housing Development Finance Corporation (HDFC) merged with its subsidiary HDFC Bank on July 1, 2023. The merger has caused the shares of HDFC to cease to exist on bourses from July 13, 2023.

The merger created the world’s fourth largest bank after JP Morgan Chase and Co, Industrial and Commercial Bank of China Ltd (ICBC) and Bank of America Corp.

After this merger, HDFC AMC, HDFC Securities, HDFC Ergo GIC, HDFC Life Insurance, and HDFC Capital Advisors have become subsidiaries of HDFC Bank.

Every HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares they hold.

Here are the five Key that are set to happen:

• The revised weight of HDFC Bank will be 14.43% in the Nifty50 index, making it the highest weight of any single constituent in the index.
• HDFC Bank will have a weight revision from 27% to 29% in the Nifty Bank index.
• LTI Mindtree will replace HDFC in the Nifty50 index, while in the Sensex index, JSW Steel will replace HDFC.
• As HDFC Bank has the highest weight in Nifty, its moment will significantly influence the performance of Nifty and Bank Nifty.
• HDFC Bank will have a market capitalisation of over 14 Lakh crore, making it the second largest firm after Reliance Industries.