Can Fin Homes, Canara Bank jump up to 5% on stake dilution plan

NEW DELHI: Shares of Can Fin Homes and parent Canara Bank jumped up to 5 per cent in Tuesday’s trade after the housing finance company said the latter had proposed to cut stake in it to 30 per cent as part of a strategy to exit non-core business. The state-run bank said it also intended to dilute its stake in unlisted subsidy Canbank Factors.

Following the announcement, shares of CanFin Homes jumped 4.85 per cent to hit a high of Rs 1,720 on BSE. Canara Bank rose 1.55 per cent to hit a high of Rs 316.70.

The bank in a filing to BSE said it would cut 13.45 per cent stake in the housing arm. As of September 30, Canara Bank had 43.45 per cent in CanFin Homes. A reduction in stake would thus take its holding in the listed arm to 30 per cent.


“The board has permitted the bank to float an RFP for empanelling investment/merchant bankers for diluting the 70 per cent stake in Canbank Factors and of 13.45 per cent in CanFin Homes,” the bank said in a filing to BSE.