LKP Finance receives RBI approval for sale of up to 62% stake to Essel Group

LKP Finance has received Reserve Bank of India (RBI) approval for proposed sale of up to 62% equity shareholding to Dakshin Mercantile, an Essel Group company and change in its management structure.

Earlier, Dakshin Mercantile and the Company had entered into a definitive agreement on 14 May 2018, under which Dakshin Mercantile agreed to acquire majority equity shareholding in the Company. After the RBI approval Dakshin Mercantile would now make an open offer to acquire a minimum 26% equity shares from public shareholders in accordance with SEBI and other applicable regulations.

The LKP Finance Chairman, Mahendra Doshi, in the Company's Board meeting held on 30 August 2018 updated the Board on the future plans of the Company - alignment with Essel Finance, possibility of funds infusion into Essel Finance companies post alignment, change of name and registered office post completion of the acquisition. The Chain man further informed the Board that Essel Finance of the Essel Group has exposure to various financial services business such as mutual fund, foreign exchange, housing finance, NBFC etc. and now wish to consolidate its financial services under the newly acquired Company over a period of time and convert the same to CIC (Core Investment Company).

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