Can Fin Homes jumped more than 2 percent intraday on September 9 after the parent firm, Canara Bank, called bids to sell 30 percent stake in the housing finance company.
The bids have been invited through merchant bankers for sale of 3,99,30,365 equity shares of the face value of Rs 2 each, Canara Bank said in a regulatory filing.
Stock price of Canara Bank also advanced more than 2 percent following the September 6 announcement.
The decision comes ahead of the merger of Syndicate Bank with Canara Bank. The merged Canara Bank-Syndicate Bank will be the fourth-largest public sector bank in the country, with a business of Rs 15.20 lakh crore which will be roughly 1.5 times that of Canara Bank. It will have the third-largest branch network in India, with 10, 342 branches and a strong presence in South India.
The Canara Bank board will meet on September 13 to consider capital infusion of up to Rs 9,000 crore through issuance of preferential equity shares to the government of India, the lender said in a regulatory filing.
At 1231 hours, Can Fin Homes was quoting at Rs 400.80, up Rs 9.05, or 2.31 percent. It has touched an intraday high of Rs 406.45 and an intraday low of Rs 396.
Canara Bank was quoting at Rs 195.65, up Rs 4, or 2.09 percent. It has touched an intraday high of Rs 196.25 and an intraday low of Rs 191
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