Gruh Finance plunges 7% as HDFC reduces stake

Gruh Finance shares fell 7.5 percent intraday on June 14 after multiple block deals. HDFCinformed exchanges that it sold 4.22 percent stake in the company ahead of Bandhan Bank merger.

“We sold 3.10 crore shares and the sale was carried out through stock exchanges at the prevailing market price. The average price was Rs 290.14 per share,” HDFC said in its filing.

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 291.60, down Rs 16.90, or 5.48 percent while Bandhan Bank, too, was down 1.5 percent at the time of publishing this copy.

[“source=moneycontrol”]