Can Fin Homes gains on promoter stake sale plan

Can Fin Homes rallied 6%  to Rs 2,026 on the BSE in an otherwise weak market after the housing finance company said that its promoter Canara Bank  will divest up to 13.45% stake in the company by the end of next month.

"The promoter bank viz. Canara Bank has informed the company that they have intimated RBI about their proposal to dilute their stake to 30% by March 31, 2017," Can Fin Homes said in a BSE filing.

In December last year, the sub-committee of the board of the Canara Bank, permitted the Bank to float a Request for Proposal (RFP) for empanelling the investment/merchant bankers for diluting the Bank’s stake of 70% in CanBank Factors (unlisted company) and of 13.45% stake in its housing finance subsidiary Can Fin Homes as part of its strategy to exit non-core businesses.

"The Bank has also informed the company that based on the acceptability of the prospective investors, final decision to divest the promoter's stake up to 13.45% to the investors would be taken by their Board in due course," Can Fin Homes said.

Canara Bank has empanelled merchant/investment bankers for sourcing prospective investors and the last date for submission of bid by prospective investors is March 1, it added.

As per BSE data, the promoter's stake in Can Fin Homes stood at 44.10% as on December 31, 2016. Individual shareholders held 33.11% stake in the company, data shows.

At 10:41 am; the stock was up 5% at Rs 2,004, trading close to its record high of Rs 2,079 touched on February 7, this year. A combined 86,857 shares changed hands on the counter on the BSE and NSE.

In past three months, the stock rallied 60% as compared to 7.5% rise in the S&P BSE Sensex.