Leading mid-size bank Kotak Mahindra Bank Thursday announced the merger of ING Vysya Bank with it to emerge as the fourth largest private bank in the country after ICICI Bank, HDFC Bank and Axis Bank.
The merger, approved by the Kotak board earlier in the day, will be on the swap ratio of 725:1000 shares, subject to approval of their shareholders and regulators.
ING Vysya Bank investors will receive 725 shares of Kotak Mahinda Bank for every 1,000 shares of ING Vysya shares they hold.
Kotak Mahindra Bank shares are priced at Rs.5 on par, while the face value of ING Vysya Bank shares is Rs.10.
"I am excited to announce the merger of Kotak Mahindra Bank and ING Vysya Bank, subject to approvals. We will work to create stakeholder value," Kotak Mahindra Bank vice-chairman and managing director Uday Kotak told reporters here.