The merger exposes IndusInd to structural risks within MFI space. Expensive acquisition is also a dampener

The board of IndusInd Bank and Bharat Financial Inclusion (erstwhile SKS Microfinance), approved the merger of the two entities, in an all-stock transaction. Shareholders of Bharat Financial Inclusion (BFIL) will get 639 shares in IndusInd Bank for every 1000 shares held. The share swap ratio implies 11-12 per cent premium to the BFIL’s current price and a multiple of over 6 times its book va...