Kotak hits second straight life high on ING Vysya deal

Reuters Market Eye - Shares in Kotak Mahindra Bank on Friday surged as much as 9.3 percent to 1,264.70 rupees, their second consecutive record high.

Kotak has agreed to buy ING Vysya Bank in record $2.4 billion share deal.

Acquisition of ING Vysya at a swap ratio of 0.72 times is better than the 0.8 times ratio mentioned in a news channel report, Nomura said in a note.

The merger will add 10 percent to earnings and 15 percent to the networth of Kotak, Nomura added.

ING Vysya shares also gained 2.3 percent.

The combined entity's market capitalisation will be more than Axis Bank , according to Reuters calculations.

 

It will create India's fourth largest private sector bank by branch network.

(Reporting by Abhishek Vishnoi)