By Malvika Gurung
Investing.com -- Shares of the financial heavyweights HDFC (NS: HDFC ) and HDFC Bank (NS: HDBK ) slid almost 3% on Tuesday, after soaring up to 15% a day before, on announcements of the two giants merging to create a banking behemoth with a market capitalization of Rs 14 lakh crore.
The two financial stocks took a breather on Tuesday, as mortgage lender HDFC declined 2.42% to Rs 2,615.25 apiece and HDFC Bank lost 2.8% at the time of writing.
On Monday, both the financial stocks made their biggest jump in 13 years, as the mortgage lender HDFC’s board approved the merging of its wholly-owned subsidiaries HDFC Investments Ltd and HDFC Holdings Ltd with HDFC Bank, and its shareholders and creditors.
The deal is expected to be completed by Q2 or Q3 of FY23, and upon completion, public shareholders will own a 100% stake in HDFC Bank, while the existing shareholders of HDFC will acquire a 41% stake in the private lender.
The merger will benefit the shareholders of both the companies, as funds for the mortgage business will be made available at lower costs, among others.
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