Shares of the new-age private lender Bandhan Bank declined by as much as 4.5%, the highest in more than 2 months time, to record day's low of Rs. 505.05 on the NSE after reports of merger with HDFC-led Gruh Finance.
As per a leading business daily report, the merger is aimed at reducing bank's promoter stake as well as broaden the housing finance portfolio of Bandhan Bank. Further, the merger will be effected via a share swap deal and as per the media report the deal is valued at around $12b billion.
According to the Bloomberg data, trading volume in the stock was 4 times the 30-day average for this time of the day.
Further, the merger of these two entities could be announced as early as this week after the companies' board meetings on Monday.
The stock of Bandhan Bank was last trading with 3.15% loss at around 11:38 am, quoting at Rs. 512.25 on the NSE.