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HDFC Gets NCLT Approval To Merge Two Units With HDFC Capital Advisors

NCLT approved the merger of HDFC Property Ventures and HDFC Venture Capital with HDFC Capital Advisors.

<div class="paragraphs"><p>HDFC Ltd. signage. (Source: BQ Prime)</p></div>
HDFC Ltd. signage. (Source: BQ Prime)

The National Company Law Tribunal has approved the merger of HDFC Property Ventures Ltd. and HDFC Venture Capital Ltd. with HDFC Capital Advisors Ltd.

In an order dated March 3, the tribunal accorded its approval to the scheme of amalgamation. The three entities involved in the merger plan have to submit a certified copy of the NCLT order to the Registrar of Companies within 30 days, the document read.

The merger will become effective after the submission is done, HDFC Ltd. informed the exchanges on Friday.

HDFC Property Ventures and HDFC Venture Capital are wholly owned subsidiaries of HDFC, whereas the home finance NBFC holds 88.23% stake in HDFC Capital Advisors, as on Dec. 31, 2022.

On Aug. 25, 2022, the board of HDFC Property Ventures, HDFC Venture Capital, and HDFC Capital Advisors had approved the proposal to merge the first two entities with the third. On Aug. 31, 2022, a joint company scheme application was filed with the NCLT.

The HDFC subsidiaries had said before the NCLT that the merger will simplify, streamline and optimise the group structure as well as enhance value for shareholders.

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The amalgamation will result in greater efficiency in cash management and unfettered access to cash flow generated by the combined business, they had said.

HDFC Property Ventures, among other things, provides investment advisory services to overseas asset management companies as well as domestic trusts—such as HDFC Investment Trust and HDFC Investment Trust II—which make investments in companies engaged in the construction and development sector in India.

HDFC Venture Capital is the investment manager to HDFC Property Fund, a SEBI-registered venture capital fund.

HDFC Capital Advisors acts as the investment manager for four alternate investment funds, three of which invest in affordable and mid-income residential projects in India. The fourth invests in entities involved in technology-related interventions in real estate and allied sectors and offering technology solutions in certain identified areas.

The HDFC stock closed 1.67% higher at Rs 2,645.85 on Friday, as compared with a 1.53% rise in the Sensex.

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