Brownfield expansion has become one of the popular strategies being pursued by companies from all over the world. Indian companies are no exception to this trend. The wave of merger and acquisitions have been knocking at the door of Indian Financial system. But this trend is not exactly new. There have been 36 mergers in the Indian banking Industry since 1969- the year in which the banking sector was nationalised by the government. The merger of ICICI Ltd with ICICI Bank is an example of reverse merger led to the creation of India’s first Universal Bank.
ICICI Ltd merged with ICICI Bank on 30th March 2002, with the swap ratio of 2 ICICI shares for 1 share of ICICI Bank limited. With this merger, second largest bank in India was born. RBI had given approval for reverse merger of ICICI Ltd with its banking arm ICICI bank. ICICI bank with its 1 lakh crore rupees asset base bank is second only to State Bank of India, which is well over Rs. 3 lakh crore in size. RBI also cleared the merger of two ICICI subsidiaries ICICI Personal Financial Services and ICICI Capital Services with ICICI Bank. The merged entity will have a capital base of Rs 95 billion, 8,300 employees and a huge nationwide branch network..... by Sabaha Khan
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