Under regulatory glare for higher promoter holding, private sector lender Bandhan Bank agreed to take over mortgage lender Gruh Finance, an arm of industry leader HDFC in an all-stock deal, thus bringing down its promoters stake to around 61%. The boards of both the lenders fixed a share exchange ratio at 568 equity units of Bandhan Bank with face value of Rs.10 for 1,000 shares of Gruh Finance which has a face value of Rs.2 each.
After the merger, the shareholding of Bandhan Financial Holdings, the holding company of Bandhan Bank will come down to 61%from 82.3%, while HDFC will own 15% in the merged entity that will have a balance sheet of a little over Rs.50,036 crore and market capitalisation of Rs.82,206 crore as of Monday.
Bandhan Bank founder MD and CEO Chandra Shekhar Ghosh, however, did not give any timeline for reducing his stake to 40%, as mandated by the RBI.
After the merger, the shareholding of Bandhan Financial Holdings, the holding company of Bandhan Bank will come down to 61%from 82.3%, while HDFC will own 15% in the merged entity that will have a balance sheet of a little over Rs.50,036 crore and market capitalisation of Rs.82,206 crore as of Monday.
Bandhan Bank founder MD and CEO Chandra Shekhar Ghosh, however, did not give any timeline for reducing his stake to 40%, as mandated by the RBI.
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