Mumbai: Mortgage lender Housing Development Finance Corporation (HDFC) on Friday said it has sold 4.22 percent stake in its housing finance subsidiary, Gruh Finance Ltd, at a price of Rs 290.14 per share for an aggregate amount of Rs 899.4 crore.
In a notice to the exchanges, HDFC said the transaction is being done to comply with the central bank's requirement to facilitate Gruh’s amalgamation with private lender Bandhan Bank.
The sale of 3.1 crore equity shares representing 4.22 per cent of the issued and paid-up share capital of Gruh was carried out through stock exchanges at the prevailing market price, HDFC said in the regulatory filing.
After completion of the sale of shares, Gruh would cease to be an HDFC subsidiary, the company said.
"The corporation (HDFC) being a shareholder of Gruh is entitled to 14.96 per cent of the post-amalgamation paid-up capital of Bandhan, based on the share exchange ratio. However, Reserve Bank of India (RBI) vide its letter dated March 14, 2019, has directed the corporation to hold 9.9 per cent or less of the paid-up capital of Bandhan, post the merger."
"In view of the above, the corporation is required to sell such number of shares in Gruh so as to be entitled to 9.9 per cent of the post amalgamation paid-up capital of Bandhan," said the statement.
Bandhan Bank had acquired Gruh Finance through a share swap deal in January this year.
