Buy ICICI Bank With Intraday Target Of Rs 890
Stock market analyst Prakash Gaba is of the view that investors can buy ICICI Bank stock to achieve an intraday target of Rs 890.
According to analyst, the investors can buy the stock with target of Rs 870.
The shares of bank, on June 16, closed at Rs 877.60 the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 1009.50 and a low of Rs 621.90 on BSE.
Current EPS & P/E ratio stood at 36.10 and 24.21 respectively.
Mrs. Chanda Kochhar, MD and CEO of ICICI Bank said that amalgamation with Bank of Rajasthan (BoR) is a profitable situation for all stockholders.
While the branch network of ICICI Bank will go up by 25%, the agreement would allow it to realize 3-year's expansion now.
ICICI Bank's board has sanctioned the acquisition deal via an all-share deal. For every 118 BoR shares, ICICI Bank will offer up 25 shares. This will bring the total value of the agreement at about Rs 3,041 crore.
As promoter P K Tayal holds 55.01% equity stake of BoR's paid-up capital, his family members will receive Rs 1,673 crore. After the deal gets finalized, Tayal family will possess about 2 crore shares in ICICI Bank, but he will not get a board position.
Mrs. Kochhar stated that the bank's board will remain the same.