The board of Housing Development Finance Corp. Ltd. approved the issuance of redeemable non-convertible debentures in multiple tranches totaling Rs. 57,000 crore on Monday.

The board also authorised an increase in HDFC's borrowing capacity from Rs. 6 lakh crore to Rs. 6.5 lakh crore. As of today, HDFC still owes Rs. 5.7 lakh crore in debt.

"The said decision was taken since the outstanding borrowings of the Corporation as on date is approx. Rs. 5.70 lac crore and the Corporation would need to borrow further for its business purposes till the effective date of merger (with HDFC Bank Ltd)," HDFC said in a stock exchange filing.

The merger of HDFC and HDFC Bank Ltd. has recently received approval from the National Company Law Tribunal (NCLT).The shareholders of HDFC and HDFC Bank, the Pension Fund Regulatory and Development Authority (PFRDA), the Securities and Exchange Board of India (Sebi), the Reserve Bank of India (RBI), and the Competition Commission of India had already granted HDFC the necessary licences (CCI).

One of the greatest mergers in Indian corporate history is the HDFC-HDFC Bank merger, which was announced on April 4, 2022. With a combined asset base of over Rs 18 lakh crore, the combined organisation is expected to be the third largest company in the nation by market capitalization following the merger. After the full transaction and merger, current HDFC stockholders would own 41% of the HDFC bank.

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