Bandhan Bank dips 3 per cent on Gruh deal

The stock of Bandhan Bank was experiencing selling pressure on Monday following the buzz that the bank is likely to acquire mortgage lender Gruh Finance through a share swap deal.

The Bandhan Bank is planning to acquire Gruh Finance Limited through a share swap transaction, said news reports. The swap ratio is reported to be 3 shares of Bandhan Bank for every 5 share of Gruh. HDFC Limited holds 57.83 per cent stake in Gruh Finance. Following the deal HDFC will also reduce its holding in Gruh by selling to institutional investors, stated the report.

The stock was volatile in the morning half. It opened at Rs. 544.00 per share, which is also its intraday high, while its intraday low was Rs. 505.60. At pre-lunch session, the stock of Bandhan Bank was quoting Rs. 510.00 per share, down by 18.65 point or 3.53 per cent. On the other hand, the stock of HDFC Limited was at Rs. 1,976.80 per share, up by 0.29 per cent, while the benchmark BSE Sensex was at 35,961.28, up by 266.18 or 0.75 per cent on Monday.