Trending Stocks:Gruh Finance Share Slips on Merger deals

Share prices of Gruh Finance Limited and Bandhan Bank continue decline during Tuesday’s trade after the entities announced a merger through share swap deal.

Bandhan Bank said in the stock exchange filing that the boards have approved the merger of the two.  Accordingly, in the share swap deal, Gruh Finance shareholders will get 568 shares of Bandhan Bank for every 1000 shares. 

As per the Analysts point of view, the deal was costly for Bandhan Bank in the short-term and may only turn profitable if they continue to scale up the business. It further point out that the swap ratio was not  cost-effective for Gruh Finance with its 73.30 cr, paid-up capital in valuations in which the swap ratio arrives to Rs 20800 cr, which is around 7% lower from its market valuation of Monday’s closing , i.e Rs 22,436 cr.

Getting impacted on the analysts forecast, share price of Gruh Finance quotes at 257.40 per share, down 15.98 percent, through first afternoon hours of trade on the NSE.  Almost similar down trend is seen in the BSE also at this time.  Conversely, shares of Bandhan Bank quotes at Rs. 479 on both exchanges down by upto 4 percent, meanwhile Sensex and Nifty rise by 159 points and 42 points at 36009 and 10813-levews respectively.