New Delhi: Housing finance firm CanFin Homes on Tuesday said its promoter Canara Bank will divest up to 13.45% stake in the company by the end of next month.
“Canara Bank has informed the company that they have intimated the Reserve Bank of India (RBI) about their proposal to dilute their stake to 30% by 31 March 2017,” CanFin Homes Ltd said in Bombay Stock Exchange (BSE) filing. “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,” it added.
As per BSE data, the promoter’s stake in CanFin Homes stood at 44.10% as on 31 December 2016. Canara Bank has empanelled merchant/investment bankers for sourcing prospective investors and the last date for submission of bid by prospective investors is 1 March.
In December last year, Canara Bank had said it proposes to bring down stake in its housing finance subsidiary CanFin Homes to 30% as part of its strategy to exit non-core businesses.