Gruh Finance slips 8% after stake sale by HDFC

HDFC is selling its stake in Gruh Finance to comply with the RBI requirement for facilitating the proposed merger of the housing finance arm with Bandhan Bank

SI Reporter  |  Mumbai 

shares slipped 8 per cent to Rs 285 on the in early morning trade after the promoter Housing Development Finance Corporation (HDFC) sold more than 4 per cent of the company's paid-up capital in the open market.

Till 09:39 am, a combined 36.5 million equity shares, representing 4.97 per cent stake of Gruh Finance, had changed hands on the and BSE, the exchanges data shows. However, the name of the buyers and sellers were not ascertained immediately.

Earlier, on May 25, the housing finance company had sold 32.59 million equity shares, representing 4.40 per cent of the paid-up capital of at price of Rs 310 per share. Nomura India Investment Fund Mother Fund and Society Generale bought partial of these stakes via block deals.

While on March 28, had sold 12.2 million shares of at a price of Rs 260 per share.

"The Corporation (HDFC) being a shareholder of Gruh Finance is entitled to 14.96 per cent of post-amalgamation paid-up capital of Bandhan Bank, based on the share exchange ratio. However, the Reserve Bank of India (RBI) has directed the Corporation to hold 9.9 per cent or less of the paid-up capital of Bandhan, post the merger,” had said in a regulatory filing on May 24.

"In view of this, the Corporation is required to sell such number of shares in Gruh Finance so as to be entitled to 9.9 per cent of the post amalgamation paid up capital of Bandhan," said.

At 09:57 am, Gruh Finance was trading 6.5 per cent lower at Rs 288 on the was down 2 per cent at Rs 534, while HDFC down marginally by 0.54 per cent at Rs 2,185. In comparison, the S&P was down 0.33 per cent to 39,610 points.


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First Published: Fri, June 14 2019. 09:59 IST