Shares of Bank of Baroda (BoB) jumped over 6 per cent in early trade on Monday, as the bank amalgamated with state-run Vijaya Bank and Dena Bank today.
This marks the first-ever three-way merger in India's banking sector.
"The consolidated bank will have over 9,500 branches, 13,400 ATMs, 85,000 employees to serve 12 crore customers and furthermore have a business mix of Rs 15 lakh crore of the balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively," BoB said.
As per the filing submitted to the exchanges today, pursuant to the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda scheme, BoB has issued and allotted equity shares of Rs 52.4 crore to Vijaya Bank shareholders and Rs. 24.8 crore to Dena Bank shareholders at an approved Share Exchange Ratio, totaling to Rs. 77.2 crore.
The filing added, "The Bank is in the process of filing listing applications with the Stock Exchanges and the aforesaid equity shares will either be credited to the Demat Accounts or Share Certificates will be dispatched to the eligible Shareholders of Vijay Bank and Dena Bank."
"Further, in terms of the aforesaid Scheme, Bank accounts of eligible shareholders of Vijaya Bank and Dena Bank as registered with the Depositories / Bank will be either credited or fractional cash warrants will be issued with amount arising out of fractional Entitlements," the statement read.
After this first three-way amalgamation announced in September 2018, the consolidated bank created will be the third-largest lender in the country after State Bank of India and HDFC Bank.
The bank also notified last week government capital infusion of Rs 5,042 crore in BoB for enhancing its capital base to meet the additional expense and make the merger a smooth affair.
The stock opened with a gap up chart pattern, at a gain of 3.26 per cent from last week's close of Rs 128.80 to further to the day's high by inclining 6 per cent to Rs 136.55 on Bombay Stock Exchange. On National Stock Exchange, it touched intraday high of Rs 136.50, a 6.1 per cent jump against the previous close of Rs 128.65.
The stock trades higher than 5, 20, 50, 100 and 200-day moving average. It has rising investors' participation at 18 lakh shares changing hands on BSE and 26 lakh shares traded on NSE, both above the 5, 10 and 30-day average volume of the stock.
(Edited by Rupa Burman Roy)