IndusInd, Bharat Financial call off deal on valuation worry:Srcs

Hinduja Group-controlled IndusInd Bank, which was exploring the option of acquiring a stake in Bharat Financial, and subsequently a merger, has called off the deal due to valuation concerns, say sources.

IndusInd had been talking to the promoters to reach a middle ground so far as valuation is concerned but as of now the deal will not take off.

There were also other banks in the race to buy stake in Bharat Financial but no strong player has emerged so far.

Bharat Financial is a widely-held company with no promoter shareholder. Morgan Stanley Investment is the largest shareholder with 5.5 percent as on December 31, 2016, followed by Morgan Stanley Mauritius' 5.4 percent. Amansa Capital has 3.9 percent along with IDFC Mutual Fund (3.4 percent), East Bridge Capital (3.4 percent) and Pinebridge Capital (3.3 percent).