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Bandhan Bank Falls 9% On Block Deals By Promoter

By Staff
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Bandhan Bank Falls 9% On Block Deals By Promoter
 

The report said that the block deals would be executed to bring down promoter shareholding in the bank to meet the Reserve Bank of India's (RBI) norms.

Bandhan Financial Holdings owned 60.95 percent stake in the bank as on Friday, and will reportedly be selling 337 million shares representing a 20.95 percent stake through the share sale, as per terms of the deal seen by Mint.

A floor price of Rs 311.1 per share has been set for the share sale, the report said, which is a discount of 9.89 percent to Friday's closing price of Rs 345.25 apiece.

Investment banks Credit Suisse, JP Morgan, Goldman Sachs and JM Financial are advising Bandhan Financial Holdings on the share sale, it said.

As per RBI's bank license norms, promoter's shareholding in a bank has to be brought down to 40 percent in three years of launching operations.

Bandhan's three-year deadline ended in September 2018, post which the central bank had imposed restrictions on the expansion of branch network and CEO remuneration. However, citing the efforts made by the bank in reducing its promoter shareholding, RBI lifted the restrictions in February 2020, with certain conditions.

Read more about: bandhan bank
Story first published: Monday, August 3, 2020, 9:36 [IST]
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