Saturday, October 19, 2019

Why Bandhan Bank surged more than 15% in October 2019

In and around 11th October, Bandhan Bank stock price was up by more than 15%, and the main reason was the inclusion of the Bandhan Bank stock in MSCI index. This can attract more than $180 millions of worth of inflows of investment. There are many institutional investors or passive fund managers which follow MSCI.

In rupees terms, it amounts to around 1300 crores of rupees. News has affected Gruh Finance also whose share price also went up by more than 10%. A major stake of Gruh Finance was bought by Bandhan Bank this year from HDFC, and the two got merged together on 17th October, and together it will be known as Bandhan Bank.

Bandhan Bank has a market cap of around 69000 crores, and most of the share of the stock is with the promoters around 82.26%.  Only 2% is available with the general public.

As per the RBI rule, the promoters have to bring their stake down to 20% by selling their stock share within a given time frame. The inclusion of the Bandhan Bank in MSCI index took place on 16th october.

Thanks!

No comments:

Post a Comment