Shares of subsidiaries of State Bank of India rose 20 per cent on Monday,

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after the country’s biggest bank signalled the conclusion of its merger with State Bank of Indore. Marketmen said the shares were up on buzz one more merger would be on the cards.

Shares of State Bank of Mysore, which said its board would decide on rights issue on August 25, rose by Rs 184.30 to Rs 1,190. While shares of State Bank of Travancore inched up by Rs 150.35 to Rs 902.30, that of State Bank of Bikaner and Jaipur ended up 20 per cent at Rs 685.70.

“There is a big market rumour that merger of one more subsidiary is on the cards, after the successful completion of the merger with State Bank of Indore,” a BSE dealer said.

State Bank of India owns 92.33 per cent in State Bank of Mysore, 75 per cent each in State Bank of Travancore and State Bank of Bikaner and Jaipur.

On Saturday, State Bank of India told the exchanges that it would issue a total of 1,14,606 of its shares to shareholders of State Bank of Indore. The latter’s sha­reholders will receive 34 State Bank of India shares for every 100 State Bank of Indore shares held on August 26. The merger was approved by the Cabinet last month.

“The shares are up on market talks that one more merger is on the way. Investors are picking up the shares insight of the arbitrage opportunities, while some are also seeing value buy opportunities in the midcap banking space,” SMC Capitals equity head Jagannadham Thunuguntla said.

The shares also outperformed the BSE bankex index, which was up 0.56 per cent. They also outperformed the benchmark indices Sensex and Nifty, which closed flat at 18,409.35 and 5,543.50 points, respectively.