When HDFC shares are delisted on July 13, it is anticipated that this will make it possible for LTIMindtree to gain entry into the benchmark Nifty50 index. HDFC is the biggest mortgage lender in the nation.
When considering both revenue and market capitalization, LTIMindtree ranks fifth in the nation as a provider of information technology services.
On Tuesday, Deepak Parekh, the chairman of HDFC, said that the merger of HDFC with HDFC Bank, the biggest private lender, would become effective as of July 1, while the shares of HDFC would be delisted as of July 13.
Both HDFC and HDFC Bank are significant contributors to the performance of the benchmark index Nifty50. While HDFC Bank accounts for 8.73% of the index’s weight, home finance giant HDFC contributes 5.88% to the Nifty50’s total weight.
LTIMindtree is a high-conviction substitute for the index, according to the findings of the Nuvama Alternative and Quantitative Research, which was conducted following the delisting of HDFC stock.
On June 27th, the share price of LTIMindtree finished the day up 3.05% at 5,160.00 each, giving the company a market capitalization of 1,52,676.84 crore on the NSE. And upon the completion of the merger, LTIMindtree will move up the rankings to become the fifty-first largest business in India based on market value.
According to the early estimates done by Nuvama, it is anticipated that LTIMindtree would receive an influx of between $150 and $160 million. According to the NSE, the members for the Nifty50 are picked from the universe of the Nifty 100 based on free-float market capitalization and liquid firms with an average effect cost of 0.50% or less for 90% of the observations for a basket size of 10 crore. This selection process is carried out using a basket size of 10 crore.
After the merger, it’s possible that the Nifty Bank index will see some changes. On Tuesday, shares of HDFC Bank finished with a gain of 1.39% at a price of 1,658.25 each, while shares of HDFC concluded with a gain of 1.33% at a price of 2,756.60 each on the NSE.
