BoB issues shares to Vijaya, Dena Bank shareholders

Mumbai (IANS) Bank of Baroda (BoB) has allotted Rs 52.42 crore worth of shares to the shareholders of the Vijaya Bank and Rs 24.84 crore shares to those of Dena Bank as the merger of the three banks came into effect on Monday.

With the amalgamation, the branches of both Vijaya and Dena Bank would function as the branches of the BoB. 

"The bank (BoB) is in the process of filing listing applications with the stock exchanges and the
aforesaid equity shares will either be credited to the demat accounts or share certificates will be dispatched to the eligible shareholders of Vijay Bank and Dena Bank," BoB said in a regulatory filing.

Further, in terms of the amalgamation scheme, bank accounts of eligible shareholders of Vijaya Bank and Dena Bank as registered with the depositories and bank will be either credited or fractional cash warrants will be issued with amount arising out of fractional entitlements, it added.

Post the merger, the BoB is now the third largest bank in the country.

Shares of the BoB surged on the BSE during the day. At 2 p.m., stocks of the bank on the BSE were at Rs 134.55 per share, higher by Rs 5.75 or 4.46 per cent from the previous close.

The Cabinet had in January, approved the merger of Vijaya Bank and Dena Bank with BoB. Although employees of the two merging banks appealed the Supreme Court against the merger, a two-member bench on March 28 rejected the petition seeking a stay on its implementation.