Maintain BUY with a TP of Rs 1809 (3.75x Sept-19 ABV of Rs 482 Indusind Bank (IIB) has announced its acquisition of Bharat Financials (BFI). As per the deal, shareholders of BFI holding 1000 shares will receive 639 shares of IIB. Thus, the deal values BFI at Rs ~154bn (Rs 1118/share) i.e an 11.4% premium to CMP. The acquisition would lead to a ~14.6% dilution of the merged entity and reduce IIBs promoter holding from ~16.8% to ~14.8%. IIB will issue preferential warrants to the promoters to restore their current stake. The merged entity would have 2658 branches and 999 VF outlets, a loan book of Rs 1.33tn, B/S size in excess of Rs 2.0tn, a customer base of 16.8mn, G/NNPA of 1.36/0.46% and PCR of ~66%.