HDFC says it has sold 4.22% stake in Gruh finance for Rs 899 crore

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Mortgage lender HDFC Friday said it has sold over 4.22 per cent stake in subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with Bandhan Bank for Rs 899.43 crore.

The sale of 3,10,00,000 equity shares representing 4.22 of the issued and paid-up share capital of Gruh was carried out through stock exchanges at the prevailing market price, HDFC said in a regulatory filing.

The average price was Rs 290.14 equity share, it added.

"Post the completion of the aforesaid sale of shares, Gruh would cease to be a subsidiary of the Corporation," HDFC said in the filing.

The corporation being a shareholder of Gruh is entitled to 14.96 per cent stake post-amalgamation, based on the share exchange ratio. However, the RBI has directed it to hold 9.9 per cent or less of the paid-up capital of Bandhan after merger.

"In view of this, the Corporation is required to sell such number of shares in Gruh so as to be entitled to 9.9 per cent of the post amalgamation paid-up capital of Bandhan. The sale reported under this disclosure is a part of the said transaction," HDFC said.

Gruh is engaged in the business of providing home loans and is registered with the National Housing Bank as a housing finance company.

The company's revenues stood at Rs 2,026.65 crore during the year ended March 2019.

HDFC had sold 6.10 per cent stake Gruh earlier in May for Rs 1,327.89 crore, which was also the part of the RBI requirement of bringing down the holding in the subsidiary firm for the proposed merger into Bandhan Bank.

Stock of HDFC traded 0.69 per cent down at Rs 2,181.80 on BSE, while Gruh slipped 5.66 per cent to Rs 291.05 apiece.

The scrip of Bandhan Bank was down by 1.55 per cent at Rs 536.95.