Bandhan Bank acquiring Gruh Finance Ltd.
Bandhan bank is set to acquire 'Gruh Finance' a housing finance subsidiary of HDFC. It will be in all shares swap deal for merger with shareholders of Gruh Finance getting 568 shares of Bandhan bank for every 1000 shares helds. To the analysis on what are the key controls of the merger and how should investors should watch this deal.
The licensing norms of The Reserve Bank required newly licence Bank to bring down promoter holding to 40% within 3 years of starting operation for Bandhan Bank Tagline of 3 years ended on August 23rd 2018, is the bank was not able to bring down the promoters holding to 40% it attracted RBI for non-compliance as a penalty RBI withdraw is General permission to open new branches and also order freezing of remuneration of the MD and CEO of the bank. Now the acquisition of 'Gruh' announces intended to bring down the promoters holding in Bandhan Bank to 61%.
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