InvestorQ : Why did Bandhan Bank correct so sharply on Monday 03 August?
diksha shah made post

Why did Bandhan Bank correct so sharply on Monday 03 August?

Angel dcosta answered.
12 months ago

The sharp fall in Bandhan Bank was on account of a huge bloc deals in which the promoter group sold out to institutions in tandem with RBI requirements for bank ownership. Bandhan Bank saw huge block deals on Monday as the promoter sold stake to meet the RBI’s promoter ownership norms.

Bandhan Financial Holdings sold 33.73 crore shares in a single day representing 20.95% of its holdings in the bank. This will bring down the promoter stake directly to 40% of the paid up capital. The deal worth Rs.10,600 crore was spread across 27 large deals and the deal was struck at a discount of 9.3% to the market price.

Camas Investments and Blackrock were among the large institutional buyers in Bandhan Bank. There were also some P-Note deals where Temasek and GIC of Singapore were reported to be eventual buyers. In late 2018, the RBI had put restrictions on Bandhan Bank including a freeze on top management pay as the shareholding was way above the RBI stipulation. Now Bandhan has fully complied.