Lakshmi Vilas Bank hits 5% upper circuit on receiving LoI from Clix Capital

The bank received preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020.

Shares of Lakshmi Vilkas Bank were locked in the 5 per cent upper circuit band at Rs 15.30 on the BSE on Monday after the lender said it has received preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Limited & Clix Finance India Private Limited dated June 12, 2020.

The board of directors, the bank said, considered the said letter for further processing in their meeting held today, June 15.

“In the event, the discussions between the contracting parties in relation to the proposed transactions are successful and definitive agreements are executed, we will make appropriate disclosures as required under the provisions of applicable law,” Lakshmi Vilas Bank said in exchange filing. READ HERE

“Under the non-binding LOI, the proposed transaction is subject to completion of due diligence, which the Bank and the intending parties will be carrying out and will be subject to regulatory and other customary approvals,” it added.

Business Standard last week reported that AION Capital-backed Clix Capital is in talks to buy a majority stake in the private lender. Highly-placed sources had told Business Standard the private-equity player through its non-banking financial arm Clix Capital may lead the deal as it looks to buy over a 51 per cent stake and a formal letter of intent will be sent to Lakshmi Vilas Bank, report said. CLICK HERE TO READ FULL REPORT

Clix Capital, a digital-lending non-banking financial company (NBFC) focused on retail, consumer, small business, and equipment loans, has assets under management of roughly Rs 5,000 crore. AION Capital, along with former GE Capital India CEO Pramod Bhasin and former DE Shaw head Anil Chawla, acquired GE Capital’s commercial lending and leasing business in 2016 and renamed it Clix Capital.

The stock of Lakshmi Vilas Bank was locked in the upper circuit of 5 per cent for the second straight day. Till 02:36 pm, a combined 402,000 equity shares changed hands and there were pending buy orders for 4.01 million shares on the BSE and NSE.