Friday, 14 June 2019

Gruh Finance plunges 7% on reports of HDFC reducing stake


Gruh Finance shares fell 7.5 percent intraday on June 14 after multiple block deals. Media report indicated that HDFC might sell part of its stake in the company ahead of Bandhan Bank merger.

On June 13, CNBC-TV18 reported that HDFC could offload 4.2 percent stake in Gruh Finance on June 14 and the base deal size could be around three crore shares with an upsize option.

HDFC has been gradually paring stake in Gruh to meet RBI conditions for Bandhan Bank merger. The housing finance company recently sold 4.47 crore equity shares representing 6.10 percent of paid-up capital of Gruh.

Of the 4.47 crore shares sold, 1.22 crore were sold at an average price of Rs 260.07 on March 28 and 3.25 crore shares at Rs 310.126 per share on May 24.

"The Corporation being a shareholder of Gruh is entitled to 14.96 percent of post-amalgamation paid-up capital of Bandhan, based on the share exchange ratio. However, the RBI has directed the corporation to hold 9.9 percent or less in Bandhan Bank post the merger. The sale reported under the disclosure is a part of the said transaction," HDFC had said in an exchange release announcing the offloading of the stake in May.

The RBI had in March granted its approval for the proposed scheme of amalgamation between Gruh Finance and Bandhan Bank.

The stock was quoting at Rs 288.35, down Rs 20.15, or 6.53 percent while Bandhan Bank, too, was down 2 percent at the time of publishing this copy.

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