Shares in Kotak Mahindra Bank surged as much as 9.3 per cent
Mumbai: Shares in Kotak Mahindra Bank surged as much as 9.3 per cent to 1,264.70 rupees, their second consecutive record high. Kotak has agreed to buy ING Vysya Bank in record $2.4 bln 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 per cent to earnings and 15 percent to the networth of Kotak, Nomura added.
ING Vysya shares also gained 2.3 per cent. 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.
( Source : reuters )
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