Bandhan Bank on Monday said it has agreed to acquire housing finance firm Gruh Finance through a share swap deal.
Gruh Finance, promoted by the country's largest mortgage firm HDFC Ltd, is into financing of affordable housing segment.
Under the merger cooperation agreement, shareholders of Gruh Finance will get 568 shares of Bandhan Bank for every 1,000 shares held.
The amalgamation will result in enhancement of shareholders' value accruing from synergy of operations, new products development, integration of technology and information, both the companies said in regulatory filings to stock exchanges.
It will help in pooling of resources, creating better synergies, optimal utilisation of resources and greater economies of scale, the filings said.
Bhandhan Bank has a market capitalisation of Rs 59,800 crore, while Gruh Finance is worth Rs 23,224 crore.
Disclaimer: No Business Standard Journalist was involved in creation of this content
