Buzzing Stock: Bharat Financial Inclusion onto finalising deal with buyers

Bharat Financial Inclusion (BFIL) is close to pegging down a buyer and the proposed deal is likely to be an all-stock transaction. Bharat Financial Inclusion, formerly known as SKS Microfinance, has been looking out for a buyer for some time. It is now in the concluding stage of discussion with IndusInd and RBL Bank and the deal is likely to be announced by the end of this month.
 
A strong rationale is being attached to this deal given that both parties are likely to benefit from the collaboration. BFIL will get a strong promoter support and cheaper funds, while acquiring BFIL will allow private sector banks like IndusInd and RBL to take advantage of its strong brand equity in rural areas.

BFIL is a non-banking finance company – micro finance institution (NBFC-MFI) and is engaged in providing micro-credit and other financial products and services to borrowers, especially to women, in rural areas. It has appointed the investment bank, Credit Suisse, to finalise the deal. It is expected to be a share swap deal with the swap-ratio likely to be at 1.5 shares of BFIL for every 1 share of the buyer company.

The stock of Bharat Financial Inclusion ended at  Rs 935.95 per share on the BSE. The stock hit an intra-day high of Rs 965.00 and intra-day low of Rs 932.15.