Shares of Bandhan Bank jumped close to 20 percent on Friday to Rs 608.30 after brokerage Motilal Oswal Financial Services tweeted the news of the private lender's addition to MSCI Index.
Following its merger with Gruh Finance, the combined free-float market capitalisation of Bandhan Bank will rise above $2.5 billion, to qualify for the large-cap index.
"Bandhan Bank is getting added MSCI index effective 16th October on effect of Gruh Finance getting merged with Bandhan Bank," Motilal Oswal's tweet read.
Bandhan Bank is getting added MSCI index effective 16th October on effect of Gruh Finance getting merged with Bandhan Bank. #MOMarketUpdates— Motilal Oswal Financial Services Ltd (@MotilalOswalLtd) October 11, 2019
Shares of Gruh Finance Ltd surged as much as 17 percent on Friday morning to Rs 327.40.
In a corporate announcement to the exchanges last week, Bandhan Bank had informed of 17 October being set as the record date to determine the shareholders of Gruh Finance that will be eligible to receive shares of Bandhan.
"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," it said.