Bandhan Bank surges 15% ahead of inclusion in MSCI Global Standard Index

One estimate shows the MSCI inclusion could lead to ETF buying of nearly Rs 1,280 crore in Bandhan Bank.

The Bandhan Bank stock ended with gains of 15 per cent on Friday, ahead of its inclusion in the MSCI’s Global Standard Index. The stock will be added to the index with effect from October 16. The inclusion is on effect of the merger between Bandhan Bank and Gruh Finance. 

Shares of Gruh Finance also rose 11 per cent, as arbitrage traders took positions in both the counters. 

Under the proposed merger, 568 equity shares of Bandhan Bank will be issued for every 1,000 equity shares of Gruh. Shares of Bandhan Bank ended at Rs 581, while those of Gruh