'BoR can reach Rs 150-160 by Friday'

ET Now caught up with Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd., to get his views on the ICICI-BoR deal.

Do you think the Bank of Rajasthan acquisition is fairly expensive for ICICI Bank?

There are a few points to be noted here:

a) The acquisition gives ICICI Bank an additional branch capacity of 25% (463 branches) which otherwise would have taken them a longer time to establish.

b) The valuation at which ICICI Bank has taken over BoR is only 2% of their market cap.

c) ICICI Bank will also be able to lay their hands on the niche clientele, which they haven't been able to attract till now.

How would you play Bank of Rajasthan if at all?

Let us see how the entire valuation reports comes out, but from the indications that we are getting, it would be around 1:5 or 1:6 and Bank of Rajasthan should be around Rs150-160 by around Friday.