Lakshmi Vilas Bank share rose 16% on Friday after the loan specialist said it had received a characteristic non-binding proposal from the Clix Group. The bank is going under the process of considering and assessing the proposed mixture with Clix Capital Services, Clix Finance India, and Clix Housing Finance.
The bank in June 2020 had inked a non-binding agreement with the Clix Group for the blend. Afterward, the parties broadened the validity of the agreement to September 15 referring to the Covid-19 lockdown. The Clix Group is backed by the private equity major Aion Capital
Further to the process of considering and evaluating the proposed amalgamation with M/s. Clix Capital Services Private Limited (“Clix Capital”), M/s. Clix Finance India Private Limited (“Clix Finance”) and M/s. Clix Housing Finance Private Limited (“Clix Housing”) (collectively, the “Clix Group”), we are glad to inform you that, the Bank has received an indicative non-binding offer from Clix Group,” the Chennai-based lender said in a bse filing to the BSE.
Following the updates, LVB stock opened with an increase of 7.02% at Rs 190.5 and later reached an intraday high of Rs 20.65, rising 16.01 intraday on BSE. The stock of Lakshmi Vilas Bank shut on 7% higher yesterday at Rs 17.80. The stock likewise hit an intraday low of Rs 19 today. The market capitalization of the bank remained at Rs 644.81 crore in the session held on October 9, 2020.
LVB stock has risen 0.79% in the last 2 days. The stock has risen 11% since the start of the year. Lakshmi Vilas Bank share value trades higher than 5,100 and 200-day moving averages however lower than 20 and 50-day moving averages.
The South-based loan specialist included later that it would keep on sharing data on material developments as and when they materialize. The loan specialist’s investors on Sept 25, 2020, cast a vote against the appointment of seven directors including the CEO and managing director S Sundar. The Reserve Bank selected and appointed a three-member Committee of Directors to post the removal which includes independent directors namely Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra.
In the event that the merger occurs, the net worth of the bank will dramatically increase to Rs 3,100 crore from the current Rs 1,200 crore. Clix Capital has a net worth of Rs 1,900 crore that will end up being the net worth of the bank after the deal.
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