Mumbai-based IndusInd Bank Ltd., has sealed a deal to acquire Bharat Financial Inclusion Ltd., after the two companies had informed the stock exchange that they have entered merger talks.
The scheme is set to take effect from January 1, 2018 contemplates the merger without winding up India’s largest microfinance lender.
Under the agreement, Bharat Financial Inclusion shareholders will get 639 shares of the bank for every 1,000 held, according to the filing.
The deal is subject to approvals from the Reserve Bank of India, market regulator Securities and Exchange Board of India and Competition Commission of India.
IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994. The bank offers commercial, transactional and electronic banking products and services
“The Board of the Bank believes that the composite scheme of arrangement relating to the merger of these two illustrious institutions will add value to all stakeholders and the Bank,” R.Seshasayee, Chairman of IndusInd was quoted as saying in a statement.
“It is a matter of immense pleasure that Bharat Financial Inclusion Limited has taken today its first steps to be a part of a larger banking family. The transaction will bring immense benefits to Bharat Financial Inclusion’s vast customer base, staff and shareholders,” P.H.Ravikumar, Chairman, Bharat Financial was quoted as saying in the statement.