RBI had in September placed restrictions on Bandhan Bank for its failure to meet the rules by freezing branch expansion and remuneration of founder and chief executive Chandra Shekhar Ghosh. This merger was motivated by this and bandhan bank seems to have gotten the short end of the stick.
“According to analysts, the swap ratio is unfavourable for Gruh Finance given its 73.30 crore paid up capital its valuations with the swap ratio comes out to around Rs 20800 crore or 7% lower from its Monday’s closing market capitalisation of Rs 22436 crore on BSE.”
For Gruh finance -
“Ironically, one of the reasons Gruh Finance enjoys such a high valuation is on account of its parentage. Housing Development Finance Corp. Ltd (HDFC) owns 57.8% in the company. With the deal, Gruh Finance will actually lose this exalted status; although Bandhan Bank has ended up buying the whole company at high valuations.”
Check out these articles -