India’s largest mortgage lender HDFC will raise Rs 1,678 crore by selling 9.2 per cent in Gruh FinanceNSE 3.37 %, two people aware with the development said. The sale of 67.4 million shares is expected to happen at a floor price of Rs 243 to Rs 249 per share in the open market on Friday.
The boards of Bandhan BankNSE 0.97 % and Gruh Finance, the affordable housing financeNSE 1.80 % arm of HDFC, had in January this year approved the merger, which was then cleared by the Reserve Bank of India (RBI) in March. Since then, HDFC has sold over 10 per cent stake in Gruh through two stock market transactions. As on June 30, HDFC held over 47 per cent stake in Gruh. HDFC is required to sell shares in Gruh to facilitate the latter’s merger with Bandhan Bank. RBI had directed HDFC to hold 9.9 per cent or less in Bandhan Bank post the merger. The merger would also help Bandhan Bank reduce promoter shareholding from nearly 82 per cent to 61 per cent. The bank is required to bring it down to 40 per cent to meet RBI norms.