In a notable move in the banking sector, Europe-based financial services group Societe Generale has acquired a stake in India’s private sector lender Bandhan Bank. The acquisition, which was made through open market transactions on July 31, gives Societe Generale a 1.08% stake in the Kolkata-based bank.
The shares were purchased at an average price of Rs 218.6 per share, bringing the overall value of the purchase to approximately Rs 382 crore. This was split between purchases on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The acquisition is seen as a positive sign for Bandhan Bank, as it suggests that Societe Generale has confidence in the bank’s future prospects. The deal may also inspire confidence in the market, potentially leading to a turnaround in Bandhan Bank’s stock performance.
It is worth noting that despite Bandhan Bank’s Q1 earnings having missed market expectations, most brokerages have recommended positive ratings on the stock. Bandhan Bank has experienced a fall of over 6% in the past month and a larger decline of 19.5% in the past year. However, the acquisition by Societe Generale could be a sign that the tide is turning for Bandhan Bank.
Here are some additional details that you may want to include in your news article:
- Societe Generale is a leading financial services group headquartered in France.
- Bandhan Bank is India’s fifth-largest private sector bank.
- The acquisition is seen as a vote of confidence in Bandhan Bank’s business model and growth prospects.
- The deal could help to boost Bandhan Bank’s share price and attract new investors.