Bandhan Bank Surges On MSCI Inclusion; Gruh Finance Stock Up 11%
Bandhan Bank Ltd. rose as much as 20 percent in early Friday trade ahead of the stock’s inclusion to the MSCI Index starting Oct. 16.
Trading volume was almost 40 times the 20-day average for the stock.
MSCI announced the addition in a filing that came after market hours on Thursday, Bloomberg said.
The inclusion comes against the backdrop of the Kolkata-based lender’s merger with Gruh Finance Ltd. next week. Meanwhile, the affordable housing finance arm of HDFC climbed 11.7 percent.
The combined free float market cap of Bandhan Bank will cross $2.5 billion post-merger, ergo making it eligible for largecap index, research firm Motilal Oswal said in a note.
So far this year, Bandhan Bank's shares have risen nearly 6 percent compared to a 7.2 percent rise in the S&P BSE Sensex. Gruh Finance, meanwhile, declined 4.4 percent during the same period.