What effect will the amalgamation of Dena Bank, Vijaya Bank and Bank of Baroda have on existing shareholders?
What's the ratio in which shares will be allotted post the amalgamation of Dena Bank and Vijaya Bank with Bank Of Baroda
The government in September last year had announced merger of state-owned Vijaya Bank and Dena Bank, with larger peer Bank of Baroda, aiming to create the third largest lender after SBI and ICICI Bank.
The amalgamation will come into effect on April 01, 2019 with March 11, 2019 as the record date.
As per the Scheme of Amalgamation:
- Shareholders of Vijaya Bank will get 402 equity shares of Bank of Baroda for every 1,000 shares Vijaya Bank. Odd lots will be settled in Cash.
Ex - If you hold 25 shares of Vijaya Bank, you will get 10 shares of Bank of Baroda and the rest in cash.
- Dena Bank shareholders will get 110 shares of Bank of Baroda for every 1,000 shares of Dena Bank. Odd lots will be settled in Cash.
Ex - If you hold 25 shares of Dena Bank, you will get 2 shares of Bank of Baroda and the rest in cash.
The shares of Vijaya Bank and Dena Bank will be de-listed and new shares of Bank of Baroda will be issued.
Refer to this circular.
How i get rest cash in zerodha account. It will add in my funds. Please suggest. I have 2305 share of dena bank. For merger i will get 253 share of
The cash component will be directly credited to your bank account (primary bank account)
Thanks for the information