Some Initial data :
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Post-merger, existing shareholder of HDFC will hold 41% stake in HDFC Bank
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HDFC shareholders to receive 42 HDFC BANK Shares for 25 shares held.
Yesterday’s HDFC Bank’s business update was quite robust as well.
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If I own less than 25 shares of HDFC, will I receive HDFC Bank shares?
HDFC out of the slump. 
- With single stock exposure limit by SEBI for MFs being 10%, if these two entities are combined , it will be way past 10% . maybe near 15%
I think mrkt may soon realize this. for now, its momentum news and fno position based move.
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With the leader of the space, becoming a bank…other players in NBFC and Housing Finance companies will be on radar like Bajaj grp, LIC Hsg fin etc.
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Do keep on radar bandhan bank as hdfc ltd has stake of almost 10% in the stock.
I too need to know this. For example if one holds only 4 HDFC now, will he get anything when shares are extinguished? Or has to buy more and have 25 minimum to get converted to 42 HDFC Bank?
What if one does not round to that value and sits tight? Will some amount be credited to bank and the shares extinguished?
After underperformance, this stock has certainly surprised many people today. This rally might continue for 1 or 2 days more.
Holding all hdfc group shares in my portfolio for long term. Finally getting rewarded for my patience.
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With merged market capitalisation what will happen with bankniffty weightage ?
@samurai @agnivo007 : If you hold less than 25 shares of HDFC still you will receive HDFC bank shares in the proportion of 1.68 = 42/25 (HDFC bank/ HDFC) HDFC bank shares. For example, if someone holds 5 shares of HDFC, they will receive 8 shares of HDFC bank and fractional shares will be cash-settled usually. We need to wait for their circular once the amalgamation is approved by regulators and the stakeholders.
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What if someone owns only HDFCBANK shares?
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HDFCBANK shares would not be getting converted, HDFC would, to HDFCBANK if the resolution goes through.
There maybe a price effect after conversion and more liquidity due to additional shares created.
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Just like that more than 70% of the gains are washed out …from this merger news pop up
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But the people who were forced to cover their CE shorts in loss when the stock opened gap up must be cursing now. 
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If we buy HDFC Ltd. now, will we still get the 42 shares after the merger is complete?
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Yes.
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I have shares of both hdfc and hdfc bank. The current prices are not in the same ratio as proposed in merger.
So if I sell all of my hdfc bank shares and buy HDFC I would stand to gain without having any risk.
Obviously these shares were bought with a long term view of at least 5 years. So please tell me what am I missing?
Reasons I could think of for difference in prices
- When I sell I have transaction cost and tax
- Dividend which one of the company may declare in the period from now to record date.
Please add if there are more.
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Yes you can benefit from these arbitrations. But don’t fight big computers and you may loose ltcg.
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Do these both companies offer any attractive dividends? I have not noticed great dividends in the past.
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I was just saying that can be one of the reasons. Am sure it’s not having same dividend yield. So it does make a small difference. Positive or negative.
To me it makes no difference. My period of holding is already more than 12 months. And from here too it will be more than 12 months before merger. So it will still be long term only.
Even if it happens before 12 months I wil lose just 5 percent of gains I make from now to the time of merger. It might be STCG also if price falls. 
Ltcg at 10 percent
Stcg at 15 percent.
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You get these arbitration opportunities for all the time till merger. It will urge you to trade more.