BoB up over 2.5%, Dena Bank plunges 18% on cabinet approval for merger

Moneycontrol News 

Shares of Bank of Baroda (BoB) rose over 2.5 percent in early trade on January 3, whereas Dena Bank plunged nearly 20 percent and Vijaya Bank dropped nearly 7 percent.

The Cabinet on January 2 approved the merger of the three public sector banks.

The three banks agreed on fair equity share exchange ratio for shareholders, Bank of Baroda said in a statement on January 2.

Also Read: Quick Take | Mega bank merger: Swap ratio sweetens deal for BoB shareholders

Bank of Baroda said Vijaya Bank shareholders will receive 402 shares of BoB for 1,000 shares held of Vijaya Bank. Dena Bank’s shareholders will receive 110 shares of BoB for every 1,000 shares.

Bank of Baroda rose as much as 3.3 percent on the BSE, quoting at Rs 123.35.

Dena Bank plunged as much as 19.7 percent and Vijaya Bank fell as much as 7.4 percent.