Bandhan Bank share price rose 20% intraday after Motilal Oswal said in a tweet that the commercial bank would be added to MSCI Global Standard Index with effect from October 16. Stock of GRUH Finance, the housing and rural finance company, also hit the upper circuit of 20 % in early trade today. GRUH Finance will soon be merged with the private sector lender.
Bandhan Bank stock saw massive buying shortly after opening higher at 5%. Later, the stock touched an intraday high of Rs 608.3, a 20% rise over its previous closing price of Rs 506.95 on the BSE. It has traded in a wide range of Rs 73.15. Shares of Kolkata-based banking and financial services company Bandhan Bank have risen 28% in a month and nearly 19% in one week.
Similarly, shares of Ahmedabad-based housing finance company, GRUH Finance climbed 5.55% with the opening bell and later rose 20% to the intraday high of Rs 327.3 on the BSE, following the news. The stock has traded in a wide range of Rs 39.4 today. Gruh Finance shares have risen 15% in one month and 10 % in one week.
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).
By Rupa Burman Roy