Moneycontrol Be a Pro
Get App
Last Updated : Jul 12, 2016 03:19 PM IST | Source: Moneycontrol.com

IDFC Bank soars 12% on buyout of micro finance co Grama Vidiyal

"IDFC Bank has signed a share purchase agreement with Grama Vidiyal Micro Finance (GVMFL) for acquisition of 100 percent equity share capital of GVMFL," says the bank in its filing.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Moneycontrol Bureau


Shares of IDFC Bank rallied 12 percent intraday Tuesday on acquisition of Tamil Nadu-based micro finance company.


"IDFC Bank has signed a share purchase agreement with Grama Vidiyal Micro Finance (GVMFL) for acquisition of 100 percent equity share capital of GVMFL," says the bank in its filing.

Close

Grama Vidiyal will become wholly-owned subsidiary of the bank after acquisition.


"The move enables IDFC Bank to significantly enhance its network and reach and make basic banking services available to a large customer base," says the bank.


The acquisition will give the bank access to 12 lakh rural and semi-urban households and network of 319 locations across 65 districts of Tamil Nadu, Kerala, Karnataka, Pondicherry, Maharashtra, Gujarat and Madhya Pradesh. This will act as business correspondent of the bank.


The 30-year old, Trichy-headquartered Gramin Vidiyal has an asset under management of Rs 1,502 crore of micro finance assets as of March 2016.


"Grama Vidiyal is a perfect fit as its business values and service philosophy aligned with that of IDFC Bank," says Rajiv Lall, founder MD and CEO of the bank.


At 14:54 hours IST, the scrip of IDFC Bank was quoting at Rs 52.35, up Rs 4.25, or 8.84 percent amid high volumes on Bombay Stock Exchange.

Posted by Sunil Shankar Matkar



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jul 12, 2016 03:08 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant