Housing Development Finance Corporation has sold another 4.22 per cent stake in Gruh Finance (Gruh), in line with the directions of the Reserve Bank of India following the merger of the housing finance company with Bandhan Bank.

“We now wish to inform you that the Corporation has today, sold certain additional shares of Gruh - 3,10,00,000 equity shares representing 4.22 per cent of the issued and paid-up share capital of Gruh,” HDFC said on Friday.

Related news:Gruh Finance to merge with Bandhan Bank

HDFC said the stake-sale was carried out on the stock exchanges at the prevailing market price. The average price was ₹290.14 per equity share.

Earlier on May 24, it had divested 6.1 per cent stake in Gruh to meet RBI norms.

The RBI, in March this year, approved the proposed scheme of amalgamation between Gruh and Bandhan Bank following an announcement in January to this effect. However, it expects HDFC to lower its stake to 9.9 per cent in Gruh.

“The Corporation being a shareholder of Gruh is entitled to 14.96 per cent of the post-amalgamation paid-up capital of Bandhan, based on the share exchange ratio. However, RBI vide its letter dated March 14, 2019, has directed the Corporation to hold 9.9 per cent or less of the paid-up capital of Bandhan post the merger,” HDFC said.

Also read:HDFC divests 6.1% stake in Gruh to meet RBI mandate

The HDFC scrip remained largely flat and closed at ₹2,182.40 apiece on the BSE. Gruh shares, however, fell 5.4 per cent and ended the day at ₹291.85 apiece, while Bandhan Bank’s scrip fell 1.56 per cent and closed at ₹536.90 apiece.

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