Gruh Finance

Hello All,

Bandhan acquisition has turned out of be a jinx for Gruh. Inspite of good fundamentals, Gruh is on a downward spiral and has lost about 25% value in just 2-3 days. The question is whether one should hold it or book profit/loss whatever? I am personally not too positive about Bandhan prospects.

Any views?

Cheers
Monty
PS - I am holding Gruh from Rs 60 levels.

 

Gruh is a good company but this merger has spoiled it.

 

I have been holding Gruh finance from 2013. I hold 5000 shares. HDFC exited it at high valuations and have shortchanged the minority shareholders. It was trading at Rs 325 on 7/01/2019. The share lost its value and slumped by around Rs 75 in the last three days as it has lost its HDFC parentage.It will not rise back to its previous levels and Gruh Finance will be delisted once the merger works out sometime this year. I feel that minority shareholders have no other choice other than selling out now or wait patiently for the Bandhan Gruh merger to take place and hope that the new merged entity will continue to grow forward but at a much lesser and less predictable growth compared to Gruh Finance alone. And one can even sell out in two or three years.

 

In that case its better to cash out now and invest elsewhere - like Repco Finance.