Shares of Dena Bank plunged nearly 20 percent on Thursday, hitting an intra-day low of Rs 14.40, on unfavorable share-swap ratio for its three-way merger with Vijaya Bank and Bank of Baroda.
Dena Bank shares opened at Rs 14.70, plunging 18.66 percent and extending its losing streak to a third day. The stock has fallen more than 18 percent during the period.
Vijaya Bank shares fell 7.5 percent to hit an intra-day low of Rs 47.25 while Bank of Baroda shares jumped more than 3.3 percent to hit the day's high of Rs 123.35.
As per the share-swap ratio, Dena Bank shareholders will get 110 shares of Bank of Baroda for every 1,000 shares held. Meanwhile, Vijaya Bank shareholders will receive 402 shares of BoB against 1,000 shares.
When compared with the Wednesday's closing price, Dena Bank was valued about 27 percent lower than its last close and therefore investors sold the stock to adjust them to the value of the swap ratio.
The Cabinet approved the merger of the three public sector banks on Wednesday. The three banks agreed on fair equity share exchange ratio for shareholders, Bank of Baroda said in a statement.
At 10.28 am, Dena Bank shares were still down by 18.16 percent, Vijaya Bank by 6.37 percent, while Bank of Baroda shares gained 1.34 percent.
The broader 50-share Nifty traded above 10,800, marginally up by 12 points. The Sensex gained by 67 points, or 0.19 percent, to trade at 35,968.
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