Housing Development Finance Corp. Ltd. on Friday said it has sold over 4.22 percent stake in subsidiary Gruh Finance Ltd., which is in the process of a merger with Bandhan Bank Ltd.
The sale of 3.1 crore shares of Gruh was carried out through stock exchanges at the prevailing market price, HDFC said in a regulatory filing. The average price was Rs 290.14 apiece, it added. The Gruh Finance stake sale earned HDFC Rs 899.43 crore.
“Post the completion of the aforesaid sale of shares, Gruh Finance would cease to be a subsidiary of the corporation,” HDFC said in the filing.
HDFC is entitled to hold 14.96 percent stake in Bandhan Bank after the private lender's merger with Gruh Finance, according to the share swap ratio for the deal. The Reserve Bank of India, however, has directed HDFC to hold 9.9 percent or less of the paid-up capital of Bandhan Bank. In May, HDFC sold 6.1 percent stake in Gruh Finance for Rs 1,327.89 crore to meet the RBI directive.
“In view of this, the corporation is required to sell such number of shares in Gruh so as to be entitled to 9.9 percent of the post amalgamation paid-up capital of Bandhan. The sale reported under this disclosure is a part of the said transaction,” HDFC said on Friday.
Gruh Finance is engaged in the business of providing home loans and is registered with the National Housing Bank as a housing finance company. The company's revenues stood at Rs 2,026.65 crore during the year ended March 2019.
On Friday, HDFC shares fell 0.97 percent to Rs 2,175.75 crore apiece on the BSE while Gruh Finance's shed 5.40 percent to Rs 291.85. The benchmark Sensex ended the day 0.73 percent lower at 39,452.07 points.
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