Can Fin Homes dips as Canara Bank calls-off divestment plan
The stock of Can Fin Homes was battered on Monday following news reports that parent Canara Bank has stalled its divestment plan.
On Saturday, Canara Bank called off its plan to divest stakes in Can Fin Homes, the bank's home finance business. The bank found called off the plan to divest its 30 per cent stake on valuation concerns. According to new reports, HDFC Limited and asset management company Baring Private Equity Asia were interested in buying stake in Can Fin Homes.
Can Fin Homes is considered to have a low-risk loan profile catering largely to salaried individuals. The housing finance company has a low average ticket size of Rs. 17 lakhs targeting affordable housing segment.
On Monday, the stock of Can Fin Homes closed at Rs. 431.20 per share, down by Rs. 53.85 or 11.10 per cent, while Canara Bank was at Rs. 264.20 per share, down by 0.05 or 0.02 per cent.