Bandhan Bank and GRUH Finance stocks rose in trade today a day ahead of record date for scheme of amalgamation. Sentiment was also positive around the stocks a day ahead of Bandhan Bank's inclusion in MSCI Global Standard Index. The stock of housing and rural finance company GRUH Finance also rose up to 5.97% to Rs 324.15 on BSE. GRUH Finance share will turn ex date on Wednesday for the proposed amalgamation with Bandhan Bank.
Bandhan Bank share price rose 8.92% intraday to Rs 618.10 compared to the previous close of Rs 567.50 on BSE. Bandhan Bank share price has gained 26% during last one year and gained 8.8% since the beginning of this year.
The large cap stock saw 1.31 lakh shares changing hands amounting to transactions worth Rs 7.88 crore on BSE.
Similarly, Gruh Finance share price rose in afternoon trade. At 12:21 pm, the large cap stock was trading 3.20% higher at Rs 315.60 on BSE. Gruh Finance share has risen 19.69% for the last four days.
On October 4, Bandhan Bank said, "In accordance with Regulation 42 of the Listing Regulations, Thursday, October 17, 2019 has been fixed as the 'Record Date', following the effectiveness of the Scheme, for the purpose of determining the shareholders of GRUH who shall be entitled to receive the equity shares of the Bank, and also for determining portfolio of the Non-Convertible Debenture holders of GRUH which shall be shifted to the new International Securities Identification Numbers (ISINs) created by the Bank, pursuant to the effectiveness of the Scheme."
The share swap ratio of the amalgamation was fixed at 568 shares of Bandhan Bank for every 1,000 shares of Gruh Finance.
On October 11, 2016, Motilal Oswal said in a tweet that the commercial bank would be added to MSCI Global Standard Index with effect from October 16.
Bandhan Bank is getting added to MSCI index effective October 16, on the effect of GRUH Finance getting merged with Bandhan Bank, effective from October 17, the tweet said.
The proposed merger has already received approval from the National Company Law Tribunal (NCLT), Competition Commission of India (CCI), Reserve Bank of India and the Securities and Exchange Board of India (SEBI).
Edited by Aseem Thapliyal