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Domestic equity mutual fund managers in India have reportedly purchased a net $570m worth of HDFC shares ahead of its merger with parent company Housing Development Finance Corp. in a "lucrative" arbitrage trade, according to Prime Database. Capitalising on the share-swap ratio upon completion, fund managers hope the merger will enable them to purchase shares at a discount to HDFC Banks current price. The merger is effective from 1 July, with HDFC Bank absorbing the parent company. HDFC shares rose by around 2.3% on 9 June.