Shares of both Kotak Mahindra Bank and ING Vysya Bank touched record highs on Wednesday. ING Vysya Bank gained over 2 per cent to touch an all-time high of Rs 1,055.25. While, shares of Kotak Bank jumped over 2 per cent to hit life-high of Rs 1,475.30.
Shares of both Kotak Mahindra Bank and ING Vysya Bank touched record highs on Wednesday. ING Vysya Bank gained over 2 per cent to touch an all-time high of Rs 1,055.25. While, shares of Kotak Bank jumped over 2 per cent to hit life-high of Rs 1,475.30.
Today is the last trading day for the shares of shares of ING Vysya Bank as its shares will be suspended from trading on the exchanges with effect from Thursday, April 16.
The existing shareholders of ING Vysya Bank will get 0.725 share of Kotak Mahindra Bank for every share held. This means that a person holding 1,000 shares of ING Vysya Bank will get 725 shares of Kotak Mahindra Bank.
Meanwhile, global brokerage Morgan Stanley has maintained 'overweight' on Kotak Mahindra Bank citing Kotak-ING Vysya Bank merger as a big positive for the stock. The brokerage has maintained a target of Rs 1,700 on Kotak Mahindra Bank which indicates an upside potential of nearly 18 per cent from its previous close of Rs 1,445.60.
Morgan Stanley believes return on assets of Kotak Bank will improve in FY17-18. "Valuations are not cheap but we see multiples being high," the brokerage added.
However, late profit booking in the market dragged these stocks lower. ING Vysya Bank Stocks closed 0.45 per cent down at Rs 1,027.20 apiece and Kotak Mahindra Bank shares ended 0.57 per cent lower at Rs 1,437.35, outperforming the broader Nifty, which ended with 0.95 per cent loss.
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