Mortgage lender HDFC Ltd. on Friday stated its board would contemplate elevating funds via non-convertible debentures in tranches aggregating Rs 57,000 crore.

“A gathering of the Board of Administrators of the Company is scheduled to be held on Monday, March 27, 2023, to contemplate the issuance of unsecured redeemable nonconvertible debentures, in varied tranches, beneath a Shelf Placement Memorandum, aggregating Rs 57,000 crore on a personal placement foundation…,” HDFC stated in a regulatory submitting.

The approval for this was granted by the shareholders on the forty fifth Annual Basic Assembly held on June 30, 2022, it stated.

It’s anticipated that the dad or mum HDFC Ltd. and its subsidiary HDFC Financial institution will merge by the third quarter of the subsequent monetary yr.

Termed as the largest transaction in India’s company historical past, HDFC Financial institution agreed to take over the largest home mortgage lender in April 2022 in a deal valued at about $40 billion, making a monetary providers titan.

The proposed entity may have a mixed asset base of round Rs 18 lakh crore. The merger is anticipated to be accomplished by the second or third quarter of FY24, topic to regulatory approvals.

As soon as the deal is efficient, HDFC Financial institution shall be 100% owned by public shareholders, and present shareholders of HDFC will personal 41% of the financial institution.

Each HDFC shareholder will get 42 shares of HDFC Financial institution for each 25 shares held.

Following the merger, the mixed stability sheet shall be Rs 17.87 lakh crore and the online price shall be Rs 3.3 lakh crore as of the December 2021 stability sheet.

As of April 1, 2022, the market capitalisation of HDFC Financial institution was Rs 8.36 lakh crore ($110 billion) and that of HDFC was Rs 4.46 lakh crore ($59 billion).

Put up-merger, HDFC Financial institution shall be twice the dimensions of ICICI Financial institution, which is the third-largest lender now.