Can Fin Homes falls 9% after Canara Bank calls off divestment plan

The stock dipped 9% to Rs 441, extending its 7% fall in past two trading sessions on the BSE.

Shares of Can Fin Homes have dipped 9% to Rs 441 per share, extending its 7% fall in past two trading sessions on the BSE after the Canara Bank, the promoter of the company called off move to divest its entire shareholding in housing finance subsidiary after receiving lower than expected price quotation.

“Since the quote received is not tune with the valuation, Canara Bank has decided to call-off the divestment process of its entire stake in Can Fin Homes, which was under progress,” Canara Bank said in a regulatory filing.

In December 2017, Canara Bank informed stock exchanges that it will offload 4% stake in Can Fin Homes (CFHL). After the transaction, the bank's holding in CFHL would have reduced to 26%.

In past 11 trading days, Can Fin Homes has underperformed the market by falling 20% as compared to 2% decline in the S&P BSE Sensex.

The trading volumes on the counter more than doubled with a combined 3.31 million shares changed hands on the BSE and NSE till 11:57 am.

Canara Bank was trading 1% lower at Rs 261 on the BSE.