The Housing Development Finance Corporation (HDFC ) offloaded another 3.10 crore shares or 4.22 per cent stake in Gruh Finance for Rs 899.43 crore on Friday.
HDFC has been paring stakes in Gruh Finance to meet RBI's requirement for Bandhan Bank merger.
"The Corporation being a shareholder at Gruh Finance is entitled to 14.96 per cent post-amalgamation paid-up capital of Bandhan Bank, based on the share exchange ratio. However, the RBI has directed the Corporation to hold 9.9 per cent or less of the paid-up capital of Bandhan, post the merger," said HDFC in filing.
The sale was carried out through stock exchanges at the prevailing market price. The average price was at Rs 290.14 per equity share.
The housing finance company in a notification said, "Post completion of the sales of shares, Gruh Finance would cease to be a subsidiary of the firm."
Shares of Gruh Finance fell 5.4 per cent on Friday, and HDFC shares ended down 0.7 per cent at Rs 2,182.40, while Bandhan Bank's scrip fell 1.56 per cent.
The Central Bank had in March approved the proposed amalgamation between Gruh Finance and Bandhan Bank.
As of now, the mortgage lender sold 4.47 crore equity shares or 6.10 per cent stake in Gruh Finance to meet RBI norms. Out of 4.47 crore shares sold, 1.22 crore were sold at floor price of Rs 260.07 on March 28 and 3.25 crore shares at Rs 310.126 per share on May 24.
Gruh is a deposit-taking housing finance company. Gruh Finance Limited came into effect from August 21, 1995.
(Edited by: Mansi Jaswal)