Bharat Financial Inclusion, micro finance firm to merge with Induslnd Bank

IndusInd Bank said it would merge microfinance firm Bharat Financial Inclusion (formerly SKS Microfinance), currently valued at nearly Rs 14,000 crore, with itself through a share swap deal. In this long-awaited merger, for each 1,000 shares of Bharat Financial, its shareholders will get 639 shares of IndusInd Bank, the lender said.

IndusInd Bank is promoted by the Hinduja group, the billionaire NRI family based in the UK that holds 26.6% in the lender. Kismet Microfinance, the promoters of Bharat Financial, hold just 1.65% in it while several mutual funds and foreign funds together hold about 78% in the micro lender, disclosed shareholding pattern on the BSE showed. Arpwood Capital, Credit Suisse Securities and Morgan Stanley were the financial advisors to the deal.