Bandhan Bank Ltd has received approval of the Competition Commission of India (CCI) for the proposed acquisition of Gruh Finance, the Kolkata-based bank said in a regulatory filing on Tuesday. Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over by Bandhan Bank in a share-swap deal in January.
The Reserve Bank of India approved the Bandhan-Gruh Finance merger in March.
“The Competition Commission of India has by way of its letter dated April 15, 2019, intimated that CCI, at its meeting held on April 15, 2019, considered the proposed combination and approved the same,” the bank said in a regulatory filing.
As part of the deal, Bandhan Bank has to transfer 14.9% stake to HDFC for merging Gruh Finance with itself.
Also Read: Hitting four birds with one Bullet: Bandhan Bank and Gruh Finance merge
The Gruh Finance deal will reduce stake of Bandhan Financial Holdings Ltd in Bandhan Bank to about 61% from the current 82%. HDFC will hold about 15% stake in the merged entity from about 57% in Gruh Finance.
The share swap ratio for the merger will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.
On Tuesday, Bandhan Bank shares rose 4.72% to ₹558.10 apiece on the BSE while the benchmark Sensex rose 0.95% to end the day at a record high of 39,275.64 points.
Source: Mint