It’s a case of West meets the East with Bandhan Bank and Gruh Finance announcing their intentions of a merger. For every 1,000 share held in Gruh Finance, investors will get 568 shares in Bandhan Bank.
In other words, the swap ratio is a little less than 2:1. Since the swap ratio has been worked out on the basis of Monday's closing price, the deal is at a 7 per cent discount for Gruh Finance's shareholders. While this did take a few analysts by surprise, given the healthy return profile and superior asset quality of Gruh Finance, they attribute the discount to the ...
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