Lakshmi Vilas Bank share price was locked in 10 per cent upper circuit at Rs 22.35 apiece on BSE after the bank informed that the mutual due diligence for the merger with Clix Group was substantially complete. The bank informed that under the non-binding letter of intent (LOI), the proposed amalgamation of Clix Group with Lakshmi Vilas Bank is subject to completion of mutual due-diligence, regulatory and other customary approvals. “The mutual due diligence is substantially complete, and the parties are in discussions on the next steps,” it said. In a span of five and a half months, Lakshmi Vilas Bank shares have rallied 114 per cent from Rs 10.45 per share. Earlier this month, the cash-starved bank announced plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 per cent. The bank said that for this it will seek approval from its shareholders in the upcoming annual general meeting (AGM) scheduled on September 25. The AGM will take place via video conferencing/other audiovisual means (OAVM) in the wake of the coronavirus pandemic.
In June this year, Lakshmi Vilas Bank signed a non-binding agreement with Clix Capital Services Private Limited (Clix Capital) and Clix Finance India Private Limited (Clix Finance), collectively known as the Clix Group, for the proposed amalgamation of Clix Group with the bank for an estimated value of Rs 1,900 crore. Since the start of this fiscal, Lakshmi Vilas Bank shares have zoomed 86 per cent till the previous close level. During the same period, the S&P BSE Sensex has surged 32.5 per cent.
In May 2019, the cash-starved lender had sought the Reserve Bank of India’s (RBI) approval to amalgamate Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd into itself. However, this did not receive a regulatory nod for the amalgamation plan. Lakshmi Vilas Bank’s annual report highlighted that there has been a steady decline in the bank’s deposit base since September 2019 and increase in the NPA ratios. The bank’s Tier 1 capital ratio has turned negative, at -0.88 per cent, as compared to the minimum requirement of 8.875 per cent.
By: Express Web Desk | New Delhi | September 16, 2020 11:46:41 am In a recent blog post, Microsoft revealed that the underwater data centre had a lower rate of failure than a conventional one. (File photo) In the spring of 2018, Microsoft plunged a shipping container-sized data centre, packed […]