Reports of a possible buyout propelled the Bank of Rajasthan scrip to a high of Rs 12.30 in intra-day deals, an increase of nearly 15 per cent over its previous close. There were reports that the bank is in talks with Karur Vysya Bank, City Union Bank and Karnataka Bank to acquire a stake in them.
The scrip of the private bank closed up by 10 per cent at Rs 11.85 after opening at Rs 11, which was also the low for the day. More than 74,00 shares were traded on the Bombay Stock Exchange.
The BoR scrip has in fact lost around 18 per cent since February 18, 2002. The rise in the scrip price was attributed solely to the stake acquisition buzz.
According to reports, the idea behind the stake acquisition is to increase its visibility in the southern regions. Recently, the Securities and Exchange Board of India passed an order absolving it of takeover code violations with regard to the way that the Tayals had increased their stake in the bank. The bank still carries cumulative losses worth Rs 125 crore in its books.
