Mumbai, May 19: On the news of the Bank of Rajasthan's merger with ICICI, the bank's shares locked at 20 per cent upper circuit on the stock markets, while ICICI, on the other hand, dipped about 3. 5 per cent in the early trade on Wednesday, May 19.
The banks' decision to merge hit the headlines on Tuesday, May 19. On the terms of the merger, the banks fixed the share swap ratio at 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan.
Based on the internal and strategic analysis, ICICI Bank managed to strike a deal with Tayal family of BoR on the above said share swap value.
In a statement to stock exchanges on the amalgamation, BoR said, the Tayal family has "entered into an agreement on May 18, 2010, with the ICICI Bank for proposing an amalgamation of both."
The merger is expected to expand ICICI Bank branch network along with bolstering the bank's presence in northern and western India.
ICICI has already earned the reputation of having the largest branch network among Indian private sector banks.