Gruh Finance tanks 8% after HDFC offloads stake to meet RBI conditions

Gruh Finance shares plunged 8 percent intraday on May 24 after HDFC sold some stake in March and May this year to meet RBI conditions.

The company was quoting at Rs 314.50, down Rs 13.30, or 4.06 percent on the BSE, at 14:57 hours IST. However, it last three months, it rallied 26 percent.

In a BSE filing, HDFC said it sold more than 4.47 crore equity shares representing 6.10 percent of paid-up capital of Gruh.

of this, 1.22 crore shares sold at an average price of Rs 260.07 on March 28 and 3.25 crore shares at Rs 310.126 per share on May 24.

The Corporation sold Gruh Finance shares to meet RBI conditions for Bandhan Bank merger.

"The Corporation being a shareholder of Gruh is entitled to 14.96 percent of post-amalgamation paid-up capital of Bandhan, based on the share exchange ratio. However, the RBI has directed the Corporation to hold 9.9 percent or less in Bandhan Bank post the merger. The sale reported under the disclosure is a part of said transaction," HDFC said.

In March, the RBI granted its approval for the proposed scheme of amalgamation between Gruh and Bandhan Bank.