Bharat Financial shares gain over 4%; IndusInd Bank slips

Shares of Bharat Financial

Inclusion Ltd (BFIL) today rose by over 4 per cent to touch a

one-year high as IndusInd Bank will acquire the country's

second largest microfinance player.

The scrip went up by 4.29 per cent to Rs 1,046.50 -- its

52-week high -- on BSE.

Shares of IndusInd Bank, however, fell by 2.85 per cent

to Rs 1,700.10.

IndusInd Bank on Saturday said it will acquire country's

second largest microfinance player Bharat Financial Inclusion

Ltd (BFIL) and the transaction is expected to be completed in

the next 10 months.

This would be the largest merger and acquisition in the

microfinance space.

Announcing the merger, IndusInd Bank Managing Director

Romesh Sobti said BFIL's shareholders will receive 639 shares

of IndusInd for every 1,000 shares of the microfinance major.

The merger will be effected through an all-stock

transaction of BFIL into IndusInd through a Composite Scheme

of Arrangement, he said.

Post merger, the new entity will have 4,000 branches and

outlets and 16 million customers.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)