Gruh Finance surges 8 per cent after HDFC block deal
The shares of the affordable housing company, Gruh Finance surged higher by more than 8 per cent intra-day on Friday. The price reaction is on the back of stake sale by HDFC through a block deal, on the exchange.
Earlier this year, the Board of Directors of Gruh Finance had approved the scheme of amalgamation with Bandhan Bank. The company had got clearance for the merger from Reserve Bank of India (RBI) in March.
The stake sale from HDFC is in respect to the regulatory guideline in regards to the merger with Bandhan Bank. The regulator had directed HDFC to hold 9.9 per cent or less in Bandhan Bank post-merger, which implied that it should reduce its stake in Gruh before the merger. As directed, HDFC sold 6.74 crore shares, approximately 9.2 per cent equity at an average price of Rs. 247 per share.
On Friday, the stock of Gruh Finance touched its intraday high of Rs. 268.95 per share. At 1:05 pm, the stock traded with gains of 4 per cent at Rs. 260 on BSE.