Tayals ask ICICI Bank to raise BoR's valuation

Unsatisfied with the internal valuation arrived at by ICICI Bank, Bank of Rajasthan's promoter Tayals have asked their suitor to sweeten the deal to a level that would value the Udaipur-based bank at Rs 4,500 crore.

"They (ICICI Bank) have got a lottery. I believe that it is a (good) deal for them... We are definitely looking for a better valuation... It should be a minimum 1:3," Bank of Rajasthan P K Tayal told PTI over phone here.

After the two banks agreed to merge on Tuesday, ICICI Bank released an internal valuation that put BoR's worth at nealry Rs 3,040 crore.

ICICI Bank said it would offer 25 shares for every 118 shares of BoR (or a swap ratio of 1:4.72) held by the Tayal family, but said this was subject to necessary approvals.
    
The 1:3 share ratio sought by Tayals would entitle them to 2.9 crore ICICI Bank shares, currently worth Rs 2,418 crore.
    
As per the share-swap ratio worked out by ICICI Bank, Tayals, who according to Sebi hold 8.88 crore BoR shares will receive 1.88 crore ICICI Bank shares. But Tayals' claim to hold only 28.6 per cent.
    
The two on Tuesday named accountancy firm Harbhakti & Co to arrive at the valuation.
    
According to a senior BoR official, the bank's board is likely to argue for a better valuation at tomorrow's meeting and also discuss issues pertaining to safeguarding the interests of its 30 lakh customers and nearly 4,000 employees.
    
"Improving the valuation from what has been offered by the bank will definitely come up in the board meeting tomorrow. Also, the board is keen that the interests of its customers and staff are protected," the official said on the condition of anonymity.