News of the merger of HDFC Bank and HDFC has not only created India’s largest financial behemoth, it has also made shareholders of the HDFC group companies richer by over ₹1 lakh crore.
There’s delight all around for the shareholders of HDFC group companies – for the past year or so, the share price of these companies had underperformed the overall index. However, that changed in a snap, with the news of the merger sending the share prices rallying by as much as 15%, adding over ₹1 lakh crore to the shareholders’ kitty.
HDFC Bank returned the biggest returns, contributing ₹2 out of every ₹3 invested in the four companies. HDFC came in at the second position, contributing ₹1 for each ₹3 invested in the four companies.
Interestingly enough, despite today’s massive boost to HDFC and HDFC Bank, all the four group companies are still significantly lower than their 52-week highs.
