The market is very obviously disappointed with the merger swap ratio of Dena Bank and Vijaya Bank. Both the bank stocks are the top losers on the BSE. Dena Bank toppled to an over 10 year low, going down 19.5% to Rs.14.35 while Vijaya Bank fell over 7.5% to Rs.47.25 and remains around the same levels.

The swap ratio of the merger was announced yesterday wherein for every 1000 shares of Dena Bank, BoB will issue 110 shares of Rs.2 each. This means Dena Bank shares are being issued at a discount of 27% to yesterday’s closing price.

Vijaya Bank shareholders will get 402 shares for every 1000 shares held; this again is at a discount of 6% to yesterday’s closing.

The market is mighty upset that the two banks have been valued at such a steep discount and that’s the reason for them occupying the top two losers place.