Centrum Capital Ltd arm to acquire 64.40% stake in Cent Bank Home Finance Ltd

Centrum Housing Finance Limited, a subsidiary of Centrum Capital limited has entered into a Share Purchase Agreement with Central Bank of India ("CBoI") for acquisition of CBoI's entire equity stake in Cent Bank Home Finance Limited ("CBHFL") constituting 64.40% (sixty four point fourty percent) of the share capital of CBHFL on a fully diluted basis, subject to the receipt of regulatory approvals first being obtained and compliance of applicable law.

Cent Bank Home Finance Limited is a deposit-taking Housing Finance and Mortgage Company jointly promoted by four Public Sector Institutions, viz. Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India and Housing and Urban Development Corporation.

Cent Bank Home Finance Limited had its origin as Apna Ghar Vitta Nigam Limited, incorporated on 7 May 1991, and later changed its name to Cent Bank Home Finance Limited on 19 June 1992. It is registered with National Housing Bank (regulated by Reserve Bank of India). The company has its presence in 9 states.

Cent Bank Home Finance Limited had Assets Under Management (AUM) of Rs 1211.70 Crore as on 30.09.2020. The Total Income of the company for the period ended on September 2020 was Rs 65.81 Crore.

The aggregate consideration of about Rs.160 crore (Rupees one hundred Sixty crore only) will be paid for the above acquisition.

The above transaction is subject to approvals from regulatory authorities.

Shares of CENTRUM CAPITAL LTD. was last trading in BSE at Rs.16.15 as compared to the previous close of Rs. 16.55. The total number of shares traded during the day was 166226 in over 456 trades.

The stock hit an intraday high of Rs. 16.6 and intraday low of 15.9. The net turnover during the day was Rs. 2693126.

Source : Equity Bulls

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