Share price of Bandhan Bank surged 3 % to intraday high as the lender received approval from National Company Law Tribunal (NCLT) for the merger with housing finance company GRUH Finance.
Shares of Bandhan Bank touched an intraday high of Rs 546.60 today, a gain of 3% over the last close of Rs 530.90. The share trades above 150, 200-day moving average, but below its 30 and 50-day SMA.
The private bank announced in the regulatory filing on June 21, quoting," the board of directors of Bandhan Bank Limited (Transferee Company) approved the scheme of amalgamation of GRUH Finance Limited (Transferor) into and with the Transferee Company under Sections of Companies Act, 2013".
Bandhan Bank, the Kolkata-based banking and financial services company had, announced the merger of Gruh Finance on a share swap deal in January 2019.
According to the share-swap ratio, for every 1,000 shares of Gruh Finance, shareholders will get 568 shares of Bandhan Bank.
The filing further added, "NCLT has dispensed with requirement of the meeting of the unsecured creditors of the Bank and has directed the Bank to issue notices to the relevant unsecured creditors in terms of the Order."
The proposed merger has already received approval from the Competition Commission of India (CCI), Reserve Bank of India and the Securities and Exchange Board of India (Sebi).
The stock price of Bandhan Bank closed at Rs 534 on BSE today, at a gain of 0.73% or 3.90 points.
(Edited by Rupa Burman Roy)