Shares of the Kotak Mahindra Bank and ING Vysya surged on Thursday after the board approved the merger of Kotak with Bangalore based ING Vysya.
Post merger Kotak Mahindra Bank will become the fourth largest private sector lender in India, after ICICI Bank, HDFC Bank and Axis Bank. Click to know more on Merger and why do companies merge.
"Kotak Mahindra Bank Ltd. held its Extraordinary General Meeting on January 7, 2015 at Mumbai, for seeking the approval of its shareholders for the scheme of amalgamation of ING Vysya Bank Ltd. with Kotak Mahindra Bank Ltd, with a share exchange ratio of 725 equity shares of Kotak Mahindra Bank Ltd. for every 1,000 equity shares of ING Vysya Bank Ltd", the bank said in the BSE statement.
The amalgamation was approved by 99.30% in number representing 99.93% in value of the shareholders present. The merger is subject to the approval of Reserve Bank of India (RBI), Competition Commission of India (CCI) and such other approvals as may be required.
Shares of the bank was seen trading at Rs 1305.95, higher by 2.77 per cent at 11.50 am IST on BSE. It touched an intra-day low Rs 1309.95 during the trade.
ING Vysya Bank was seen trading higher by 3.10 per cent at Rs 905.50 on BSE. It touched an intra-day high of Rs 907.90 during the trade.