Deals
Newest Indian Bank Plans $11.7 Billion Merger to Meet Rules
- Gruh’s investors to get 568 shares of Bandhan for 1,000 held
- Merger to help Bandhan diversify into a new category of loans
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Bandhan Bank Ltd., India’s newest lender, will combine with mortgage financier Gruh Finance Ltd. in a $11.7 billion deal, bringing the bank closer to meeting shareholding rules and helping it accelerate expansion.
Investors in Gruh Finance, controlled by Housing Development Finance Corp., India’s biggest mortgage lender, will get 568 shares of Bandhan Bank for every 1,000 they own, according to exchange filings from the companies. The deal is valued at about 818 billion rupees ($11.7 billion), calculations based on closing share prices on Monday showed.