Bank Of Baroda shares jump 6% on merger comes into effect

Shares price of Bank of Baroda (BoB) advanced over 6% per cent on Monday – the day when Vijaya Bank and Dena Bank was amalgamated with it. 

According to the filing submitted to the stock exchanges on Monday, in accordance with the amalgamation/merger of Vijaya Bank and Dena Bank with Bank of Baroda scheme, Bank of Baroda has issued and allotted equity shares of Rs52.4crore to Vijaya Bank shareholders and Rs24.8crore to Dena Bank shareholders at an approved Share Exchange Ratio, aggregating to Rs77.2crore. To make the merger a smooth affair, The govt last week decided to infuse Rs5,042crore in Bank of Baroda to boost its capital base to meet the additional expense. 

Reacting positively with the merger, during Monday mid-market session, Bank of Baroda stock gained 4.85percent to Rs134.95 from last week’s close of Rs128 on BSE at 2.00pm.  On the NSE, it touched an intraday high of Rs137.30 against the previous close of Rs 128.65 and is currently trading at Rs134.55 up by 4.59%.

Meantime, the Sensex jumped 378points to 39,051 and the Nifty also advanced to 11,716, up 92points.