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Shares of Gruh Finance and Bandhan Bank tumbled on Tuesday, with the former plunging by up to 16.6 per cent following announcement of merger plans .
The stock of Gruh Finance tanked 16.39 per cent to close at Rs 256 on the BSE. Intra-day, it plummeted 17.35 per cent to Rs 253.05.
On the NSE, shares of the company dived 16.59 per cent to end at Rs 255.50.
Shares of Bandhan Bank fell 4.80 per cent to finish at Rs 477.05 on the BSE. Intra-day, it dropped 6 per cent to Rs 470.85. On the NSE, the shares slumped 3.68 per cent to close at Rs 479.70.
"The boards of Bandhan Bank and Gruh Finance announced merger of the two entities wherein shareholders of the latter would receive 568 shares of the former for every 1,000 shares held. The deal values Gruh at Rs 20,900 crore which is at a 7 per cent discount to yesterday’s market capitalisation,” YES Securities said in a report.
Bandhan Bank on Monday said it has agreed to acquire Gruh Finance through a share-swap deal.
Gruh Finance, promoted by the country’s largest mortgage firm HDFC Ltd, is into financing of affordable housing segment.
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