Kotak Bank hits a new high

Kotak Bank is currently the stock of the day. Yesterday the stock had hit a new high at Rs.1163.70 but that was in anticipation and today’s new high of Rs.1260.90, with a 4.5 times surge in volumes is on account of the anticipated news becoming a reality.

Yes, Kotak Bank has bought ING Vysysa in an all-share deal. In this, shareholders of ING will get 725 shares of Kotak Bank for every 1000 shares held. This means a price of Rs.790 for each ING share, , based on the average closing price of Kotak shares during the month to November 19, valuing the deal at around Rs 15,000 crore.

This deal will be beneficial to Kotak as it would catapult Kotak to becoming the fourth largest bank in India and it will gain the advantage of 1214 branches across India. The new entity will come into effect from April 1, 2015.