Jan 7: In a bid to snip its promoter holding and also to up its housing finance activity, Bandhan Bank is said to be lining up the acquisition of mortgage lender Gruh Finance. The takeover, according to a Mint report, could be through the share swap route.
Gruh Finance has 57.83 percent stake owned by Housing Development Finance Corporation Ltd (HDFC). As per the acquisition move, Gruh shareholders stand to get three shares of Bandhan Bank for every five shares held in mortgage lender. The swap, added the report, will be based on the six-month weighted average price of the shares of the two companies.
It is being reported that the deal will see HDFC also reducing its stake further by around 5.5% in the merged entity. This would be done by offloading shares to a public institutional investors or in the secondary market so that HDFC’s total holding as a promoter in the combined banking entity is brought down below 10%. This, in fact, is in tune with the bank ownership norms stipulated by RBI.
It is expected that a formal reveal of the merger could come about this week after the boards of the two companies meet.
Bandhan Bank at the moment has a market value of around Rs 63,000 crore, and Gruh Finance has a market cap of around Rs 23,000 crore. The merger will also make HDFC a promoter of Bandhan Bank.