Posted by on September 16, 2020 5:27 am
Categories: Small Business News

Lakshmi Vilas Bank soars 10% on completion of due diligence with Clix Group

Lakshmi Vilas Bank soars 10% on completion of due diligence with Clix Group

Shares of zoomed 10 per cent to hit an intra-day high of Rs 22.35 per share after the bank said the mutual due diligence process between the lender and Clix Group was nearly complete.

“The mutual due diligence is substantially complete, and the parties are in discussions on the next steps,” the lender informed the exchanges.

The Bank had, in June this year, signed preliminary, non-binding letter of intent with Clix Capital Services Private Limited and Clix Finance India Private Limited, collectively known as the Clix Group, in relation to the proposed amalgamation of Clix Group with the bank. After the merger, the entire shareholders’ fund of Clix Capital of around Rs 1,900 crore and assets of around Rs 4,600 crore, will get amalgamated into the bank.

At 9:55 am, stock of the lender was locked in the 10 per cent upper circuit band, as against 0.17 per cent gain in the benchmark S&P BSE Sensex. A combined 3.15 million shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. So far in the financial year 2020-21, the bank’s stock price has surged 86 per cent till Tuesday, as against 32.5 per cent gain in the benchmark Sensex, BSE data show.

Apart from Clix Group, the lender is also looking at a few large marquee long term investors as well in mutual consultation. “Therefore, as per current quick estimates of the advisors, after amalgamation of Clix Capital, the CET-1 of the bank might reach a reasonable threshold level stipulated under extant regulatory norms based on the present level of assets and capital,” said the bank. READ HERE

Early this month, said is plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent.

LVB said it would seek approval for the proposals from its shareholders in the upcoming e-annual general meeting on September 25. The bank has been exploring various options for raising funds for augmenting the tier-I capital to support business growth as directed by the RBI, it said in the notice. READ HERE

Published at Wed, 16 Sep 2020 04:38:54 +0000

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.