9.89% of Bandhan Bank’s stake is acquired by HDFC
Fri Nov 01 2019 / By: Jigi YadavAs a part of merger scheme, the mortgage firm, HDFC Ltd has acquired a stake of 9.89% in Bandhan Bank. To this effect, approximately 15.93 crore shares have been transferred to HDFC Ltd, as asserted by Bandhan Bank in a regulatory filing.
Few weeks ago, it merged with Gurh Finance, in result of which, the shareholding of the promoter fall from 82.26% to 60.96%. This merger came into force to meet the RBI’s stipulation and was a part of the bank’s stake dilution exercise.
To add to it, Reserve Bank of India also imposed a fine of Rs. 1 crore on Bandhan Bank to not being able to bring down the promoter shareholding up to 40% based on the timeline of the central bank. The aforesaid merger scheme between Bandhan Bank, an affordable housing finance company promoted by HDFC Ltd and Gruh Finance was approved by all the mandatory authorities and shareholders and creditors from both the companies.
With result of the merger scheme, 9.89% stake out of the total share capital of Bandhan Bank is allotted to HDFC Bank.
What is a merger scheme?
A merger scheme is the combination of minimum two or more companies into one company. As its result, the merged company loses its corporate existence and the other expands and survives. The survivor company gets the assets/stake of the merged company and all the power of control is vested now vested in the survivor company.