Shares of ICICI Bank Thursday plunged to Rs 815, down 1.17 per cent on the Bombay Stock Exchange due to concerns of an overvalued takeover of Bank of Rajasthan, whose shares soared to a year high.
Shares of Bank of Rajasthan (BoR), which has been on a rise since the last five trading sessions, today surged by another 10 per cent to Rs 131.30.
BoR scrip rose over 63.59 per cent in just three days --surging 10 per cent for the third consecutive day -- as promoters of the bank entered into talks with ICICI Bank for a possible merger.
Earlier this month, it was reported that the Tayal family, the promoters of BoR, was planning to quit the bank and was in talks with ICICI for the same. Since then (May 5), shares of ICICI Bank fell nearly by 10 per cent, while BoR's rose substantially.
On Tuesday, the board of the ICICI Bank agreed to take over BoR. Under the pact, which is subject to regulatory and other approvals, ICICI Bank will offer 25 shares for every 118 shares of BoR held by the Tayal family.