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Gruh Finance shares tumble 16.6 pc; Bandhan Bank falls nearly 5 pc on merger plans

Press Trust of India  |  New Delhi 

Shares of and Bank tumbled Tuesday, with the former plunging up to 16.6 per cent following announcement of merger plans.

The stock of tanked 16.39 per cent to close at Rs 256 on BSE. Intra-day, it plummeted 17.35 per cent to Rs 253.05.

At NSE, shares of the company dived 16.59 per cent to end at Rs 255.50.

Shares of Bank fell 4.80 per cent to end at Rs 477.05 on BSE. Intra-day, it dropped 6 per cent to Rs 470.85.

At NSE, shares of the company slumped 3.68 per cent to close at Rs 479.70.

"The boards of Bank and announced merger of the two entities wherein shareholders of the latter would receive 568 shares of the former for every 1,000 shares held. The deal values Gruh at Rs 209 billion which is at a 7 per cent discount to yesterday's market capitalisation," said in a report.

Bandhan Bank on Monday said it has agreed to acquire 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 agreement, shareholders of Gruh Finance will get 568 shares of Bandhan Bank for every 1,000 shares held.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 17:20 IST