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Lakshmi Vilas Bank hits the roof

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Lakshmi Vilas Bank hit an upper circuit limit of 5% at Rs 73.80 at 11:50 IST on the BSE after media reports suggested that the proposed merger of Lakshmi Vilas Bank with Indiabulls Housing Finance is likely in 9-12 months.

Meanwhile, the S&P BSE Sensex was down 54.18 points, or 0.14% to 39,475.54.

On the BSE, 1.10 lakh shares were traded in the counter so far compared with average daily volumes of 65,000 shares in the past two weeks. The stock a low of Rs 71.80 in early trade today. The stock had hit a 52-week high of Rs 121.75 on 21 June 2018 and a 52-week low Rs 54.80 on 25 February 2019.

Ajit Mittal, the Group Executive Director of Indiabulls, was quoted by the media as saying that Indiabulls Real Estate promoters have sold around 12% stake in the company to Embassy group on Friday, 7 June 2019, as the Indiabulls Group wants to focus on core financial services business.

Indiabulls Group has started the process of volunteering amalgamation with Lakshmi Vilas Bank and the merger will be completed in next 9-12 months. The merger will be subject to approval from RBI, National Company Law Tribunal and the Competition Commission of India, among others, media reports suggested.

On 5 April 2019, Lakshmi Vilas Bank said that its board approved a merger with Indiabulls Housing Finance, subject to the Reserve Bank of India (RBI) and other regulatory and statutory approvals. The share-swap ratio for the merger has been fixed at 1:0.14, which means that for every 100 shares of Lakshmi Vilas Bank held by shareholders, they will be entitled to receive 14 shares of Indiabulls Housing Finance.

Lakshmi Vilas Bank reported a net loss of Rs 264.43 crore in Q4 March 2019 compared with net loss of Rs 622.25 in Q4 March 2018. Total income fell 0.2% to Rs 739.73 crore in Q4 March 2019 over Q4 March 2018.

As on 31 December 2018, Lakshmi Vilas Bank's operations are spread over a network of 569 branches (plus 6 extension counters) with pan-India presence, supervised by 11 regional offices.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 07 2019. 11:59 IST