<p>“It is obvious that ICICI Bank will have to take the Foreign Investment Promotion Board (FIPB) approval as they are foreign-owned bank,” official sources in the industry and commerce ministry said.<br /><br />ICICI Bank had announced last week that it would take over the troubled Bank of Rajasthan and called a board meeting on Sunday to consider the valuation report and approve the amalgamation of BoR. The ICICI board will also approve the share swap ratio for the merger.<br /><br />BoR and ICICI Bank had appointed accountancy firm Haribhakti & Co to assess the value of the BoR. Sources further said besides the FIPB, ICICI Bank would also have to obtain regulatory clearances from RBI and Securities and Exchange Board (Sebi).<br />For foreign investment approval, ICICI can directly approach the FIPB or RBI can refer the case to the government.<br /><br />Following the new foreign investment guidelines issues through Press Note 3 in February 2009, ICICI Bank has become a foreign-owned, Indian-controlled bank as the overseas equity in the bank is over 65 per cent.<br /><br />The Bank had earlier indicated a swap ratio of 25:118. It would mean that ICICI Bank will offer 25 shares for every 118 shares of BoR. Post-merger, the Tayal family, which according to Sebi holds 55 per cent equity, would exit BoR.<br />Press trust of India<br /><br />Promoters seek better valuation<br />Unsatisfied with the internal valuation arrived at by ICICI Bank, BoR’s promoter Tayals have asked their suitor to sweeten the deal to a level that would value the Udaipur-based bank at Rs 4,500 crore, reports PTI from Mumbai.<br />“ICICI have got a lottery. I believe that it is a good deal for them... We are definitely looking for a better valuation... It should be a minimum 1:3,” BoR’s P K Tayal said. Earlier, ICICI released an internal valuation that put BoR’s worth at nealry Rs 3,040 crore.</p>
<p>“It is obvious that ICICI Bank will have to take the Foreign Investment Promotion Board (FIPB) approval as they are foreign-owned bank,” official sources in the industry and commerce ministry said.<br /><br />ICICI Bank had announced last week that it would take over the troubled Bank of Rajasthan and called a board meeting on Sunday to consider the valuation report and approve the amalgamation of BoR. The ICICI board will also approve the share swap ratio for the merger.<br /><br />BoR and ICICI Bank had appointed accountancy firm Haribhakti & Co to assess the value of the BoR. Sources further said besides the FIPB, ICICI Bank would also have to obtain regulatory clearances from RBI and Securities and Exchange Board (Sebi).<br />For foreign investment approval, ICICI can directly approach the FIPB or RBI can refer the case to the government.<br /><br />Following the new foreign investment guidelines issues through Press Note 3 in February 2009, ICICI Bank has become a foreign-owned, Indian-controlled bank as the overseas equity in the bank is over 65 per cent.<br /><br />The Bank had earlier indicated a swap ratio of 25:118. It would mean that ICICI Bank will offer 25 shares for every 118 shares of BoR. Post-merger, the Tayal family, which according to Sebi holds 55 per cent equity, would exit BoR.<br />Press trust of India<br /><br />Promoters seek better valuation<br />Unsatisfied with the internal valuation arrived at by ICICI Bank, BoR’s promoter Tayals have asked their suitor to sweeten the deal to a level that would value the Udaipur-based bank at Rs 4,500 crore, reports PTI from Mumbai.<br />“ICICI have got a lottery. I believe that it is a good deal for them... We are definitely looking for a better valuation... It should be a minimum 1:3,” BoR’s P K Tayal said. Earlier, ICICI released an internal valuation that put BoR’s worth at nealry Rs 3,040 crore.</p>