Kotak Mahindra Bank, ING Vysya shares surge over 7 per cent on merger reports

Shares of Kotak Mahindra Bank and ING Vysya Bank surged over seven per cent on the Bombay Stock Exchange (BSE) on Thursday after a news report claimed that merger between the two is on the cards.

Intra-day, Kotak Mahindra's stock surged 7.89 per cent to touch its one-year high of Rs 1,163.70. Similarly, shares of ING Vysya Bank logged a 52-week high by spurting 13.81 per cent to Rs 864.80 a piece.

As per media reports, Kotak Mahindra Bank is in final stages to acquire ING Vysya Bank in a ratio of 2:2.5 and the deal values ING Vysya Bank at Rs 16,500 crore.

Bourses have sought clarification from the two companies about the merger reports.

In a filing to the BSE on Thursday, ING Vysya Bank said, "The company will abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company."

Meanwhile, Kotak Mahindra's reply is awaited.

Kotak Mahindra Bank's stock surged 7.28 per cent to settle at Rs 1,157.05 per scrip on the BSE, while ING Vysya Bank's counter rallied 7.15 per cent to end at Rs 814.20.