Bandhan Bank, Gruh Finance trade firm ahead of record date for amalgamation

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Shares of Bandhan Bank and Gruh Finance rallied by up to 9 per cent on the BSE on Tuesday ahead of record date for scheme of amalgamation.

Shares of Gruh Finance will turn ex-date on Wednesday for the proposed amalgamation with Bandhan Bank.

The board of directors of Bandhan Bank and Gruh Finance had fixed Thursday, October 17, 2019 as the record date, following the effectiveness of the scheme, for the purposes of determining the shareholders of the company who shall be entitled to receive shares of Bandhan Bank. The share swap ratio for the amalgamation was fixed at 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.

The National Company Law Tribunal (NCLT) on September 18 cleared the scheme of amalgamation between Kolkata-based Bandhan Bank and Ahmedabad-based Gruh Finance.

Among the individual stocks, Bandhan Bank surged 9 per cent to Rs 618 on the BSE. The stock of private sector lender was trading close to its 52-week high level of Rs 636 hit on May 3, 2019. Gruh Finance soared 6 per cent to Rs 324 in the intra-day trade on the BSE. In comparison, the S&P BSE Sensex was up 0.58 per cent at 11:16 am.

In the past two weeks, the stock of Bandhan Bank has zoomed 31 per cent as compared to a 0.38 per cent rise in the S&P BSE Sensex. The stock will be added to the MSCI’s Global Standard Index with effect from October 16. The inclusion is the effect of the merger between Bandhan Bank and Gruh Finance.