my working for combined entity… bandhan should have about 161 cr shares post share swap. and combined profit of rs 2300 cr for the year ending 31-03-2019… (merger is effective 1-1-19)… total market cap of the company is Rs 80000 cr that means 35 PE… If I invest via GRUH its 5% discount that is PE of 33.5.
bandhan bank wont be able to expand branches as it still wont be able to make it to 40% promoter holding… so I am not sure if they can convert gruh branches to full bank branch.
the combined entity will be more stable as there are less microfinance loans… and they get the benefit from GRUHs management experience… both entities cater to similar customer base… LIG / MIG
growth should moderate as the base has become bigger… but cross selling provides huge oppurtunies. Also, huge geographical expansion.
also HDFC being 15% holder will serve the company / new bank better as they may say that it is only a financial investment but they can always benefit from HDFC management. HDFC Intend to keep atleast 9.9%…