Stocks

Bharat Financial hits near 7-year high

Reuters | Updated on January 08, 2018 Published on October 16, 2017

Shares of Bharat Financial hit near 7-year high on merger with IndusInd Bank.

The stock rose as much as 3.8 per cent to its highest since November 1, 2010.

IndusInd Bank Ltd has agreed to an all-share deal to buy Bharat Financial for close to Rs 15,500 crore ($2.40 billion).

IndusInd Bank will give Bharat Financial's shareholders 639 of its shares for every 1,000 shares they own in the microfinance lender.

"We believe that the merger is clearly a sweet deal for Bharat Financial shareholders,'' say analysts at Motilal Oswal.

Morgan Stanley estimates that the deal will lead to increase in Bharat Financial's earnings by about 36 per cent for FY 2019 and 42 per cent for FY 2020.

Shares of IndusInd Bank were down 2.4 per cent. shares of Bharat Financial Inclusion has gained about 71 per cent this year up to Friday's close.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on October 16, 2017
null
This article is closed for comments.
Please Email the Editor