The share swap ratio set for the Bandhan-Gruh Finance merger ensures HDFC has got itself a sweet deal. Photo: ReutersNews of Bandhan Bank Ltd’s purchase of Gruh Finance Ltd sent the former’s shares crashing over 6% on Monday. From Bandhan Bank’s perspective, the merger share swap ratio of 2.84:5 is slightly better than what news reports had suggested. With the deal, Gruh Finance will actually lose this exalted status; although Bandhan Bank has ended up buying the whole company at high valuations. That said, the Bandhan-Gruh Finance deal alone is not enough to meet norms.

Source: Mint January 07, 2019 21:22 UTC