In the past two deays, Bandhan Bank share prices have dropped by around 10% while Gruh Finance share prices has plunged by around 20%. The deal favours HDFC more than the shareholders of Bandhan Bank and Gruh Finance, according to five people that Mint spoke to. For the Gruh Finance management, the merger discussions came as a surprise, said two of the five people directly aware of the Bandhan-Gruh Finance deal. HDFC holds 57.83% in Gruh Finance as the promoter, while Bandhan Financial holds around 82.28% in Bandhan Bank. Since the Bandhan-Gruh Finance merger is being carried out on the basis of six-month weighted average price, the Bandhan-Gruh Finance merger will result in HDFC’s holding falling to around 15.44% in the merged entity and Bandhan Financial’s holding dropping to around 60.27%.

Source: Mint January 08, 2019 18:22 UTC