The National Company Law Tribunal (NCLT) has agreed to hold a shareholders’ meeting to obtain approval for the proposed merger of HDFC and HDFC Bank. HDFC said in a regulatory filing on Friday that it will hold a shareholder meeting on November 25, 2022, to consider and approve the proposed merger.

HDFC Ltd has also received approval from the Securities and Exchange Board of India (Sebi) to transfer its wholly-owned subsidiary HDFC Property Ventures Limited (HPVL) to HDFC Bank.

Described as the biggest deal in Indian corporate history, HDFC Bank on April 4 created a financial services giant on April 4 agreed to buy the country’s largest mortgage lender for about $40 billion, creating a financial services titan.

The deal has received in-principle approvals from the Stock Exchange, Reserve Bank of India (RBI), Sebi, Pension Fund Regulation and Development Authority (PFRDA) and Competition Commission of India (CCI).

The proposed entity will have a consolidated asset base of around Rs 18 lakh crore. The merger is expected to close in the second or third quarter of FY24, subject to regulatory approvals.

Once the deal goes into effect, HDFC Bank will be 100% owned by public shareholders, and existing HDFC shareholders will own 41% of the bank. HDFC shareholders will receive 42 shares of HDFC Bank for every 25 shares they hold.

After the merger, the consolidated balance sheet as of December 2021 stood at Rs 17.87 lakh crore, and net assets stood at Rs 3.3 lakh crore.

As of April 1, 2022, HDFC Bank has a market capitalisation of Rs 8.36 lakh crore ($110 billion), and HDFC has a market capitalisation of Rs 4.46 lakh crore ($59 billion). The combined HDFC Bank will be twice the size of ICICI Bank, now the third largest bank.