Bank of Rajasthan (BoR) shares rose to their highest level since November 1995, a day after the Reserve Bank of India (RBI) approved its merger with ICICI Bank. The RBI’s decision finally brought the curtains down on a three-month process, marred by shareholder protests and which required the central bank’s intervention.
BoR shares, which rose as much as 8.9 per cent, closed 5.8 per cent higher at Rs 201.05 in Mumbai, to come in line with the swap ratio of one ICICI share for 4.72 of its shares. ICICI Bank gained 1.4 per cent to Rs 976.4. Dissenting shareholders would have an option of selling their shares at Rs 154.50 if they don’t want to swap their shares for ICICI Bank stock. The amalgamation comes into effect from on Friday, RBI said.
An ICICI Bank spokesman didn’t comment on the number of dissenting shareholders. After studying the shareholder approvals, the central bank cleared the merger plan late Thursday evening. The amalgamation will add 463 branches and 111 ATMs to ICICI Bank’s over 2,000 branches and 5,500 ATMs.
