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IBHFL, subsidiary to merge with Lakshmi Vilas in new amalgamation scheme

IBHFL will hold around 90.5 per cent of the equity capital of the merged entity, while shareholders of LVB will hold around 9.5 per cent.

Gireesh Babu  |  Chennai 

lakshmi vilas bank
Lakshmi Vilas bank

Ltd (LVB) has amended the scheme of amalgamation leading Finance Ltd (IBHFL) and its subsidiary Ltd (ICCL) to merge into the bank, changing the previous scheme where the Bank was to be merged with the housing finance company.

IBHFL will hold around 90.5 per cent of the equity capital of the merged entity, while shareholders of LVB will hold around 9.5 per cent.

LVB will issue equity shares to both on the record date and no separate consideration will be paid for the transfer of the subsidiary.

ICCL, a non-deposit taking NBFC registered with the Reserve Bank of India, has its focus on long-term secured mortgage-backed loans. The merger of this company with the Bank will be in the overall interest of the company and will help it to utilise the available capital more efficiently rather than under the standalone NBFC, said the Bank.

"Also, given the regulatory framework governing new private banks, it's prudent to conduct the lending business under the Bank," it said.

The share exchange ratio will remain the same, with the shareholders of IBHFL and ICCL will receive 7.143 equity shares of face value of Rs 10 each of LVB for their each shares, which are of the face value of Rs 2 each.

First Published: Fri, May 03 2019. 21:51 IST
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