trending Market Intelligence /marketintelligence/en/news-insights/trending/JxAxnhezN2G6WMlKPZh7Bg2 content esgSubNav
In This List

Report: Bandhan Bank to acquire Gruh Finance via share swap

Blog

Balance Sheet Strategy in an Unusual Rate Environment

Blog

Investors' Views of the Industry Today & the Outlook for Tomorrow

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion


Report: Bandhan Bank to acquire Gruh Finance via share swap

India's Bandhan Bank Ltd. is likely to announce the acquisition of Housing Development Finance Corp. Ltd.'s 57.83%-subsidiary Gruh Finance Ltd. in a share-swap deal as soon as the week of Jan. 7, two people with knowledge of the matter told Mint.

Under the proposed deal, Gruh Finance's shareholders will receive 3 shares of Bandhan Bank for every 5 shares of Gruh Finance held. If the deal pushes through, HDFC's stake in the merged entity would drop to 15.44%, while Bandhan Bank promoter Bandhan Financial Holdings Ltd.'s stake in the company will drop to about 60.27% from about 82.3%. As part of the deal, HDFC will sell reduce its stake in the merged entity to less than 10%, to comply with the Indian central bank's rules.

HDFC and Bandhan Bank did not respond to Mint's emails for comments.

In December 2018, HDFC and Bandhan Bank dubbed as speculation a media report that they were in talks for Bandhan Bank's potential acquisition of Gruh Finance.