BoR jumps to one-year high on merger with ICICI Bank

MUMBAI: Bank of Rajasthan shares on Wednesday surged 20 per cent to touch a one-year high on the BSE, a day after the Bank announced it would merge with private sector lender ICICI Bank.

Shares of Bank of Rajasthan jumped 20 per cent to hit the upper-circuit at Rs 119.40 on the Bombay Stock Exchange.

"The existing investors should exit from the stock at this level and new investors should be cautious buying this stock at much higher levels," CNI Research Chairman and Managing Director Kishor P Ostwal said.

On the National Stock Exchange, the stock climbed to Rs 119.35, up 20 per cent.

Meanwhile, ICICI Bank was trading at Rs 859.35, down 3.37 per cent on the BSE at 0928 hrs.

Bank of Rajasthan stocks rose yesterday on reports that promoters were looking to sell their stake. The stock had surged 19.95 per cent to close at a 52-week high of Rs 99.50 on the BSE.

After market hours yesterday, the Bank of Rajasthan announced that it has agreed to merge with ICICI Bank.

Under the agreement ICICI Bank will offer 25 shares for every 118 shares of BoR held by the Tayal family, promoters of Bank of Rajasthan.