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LVB to allot near 5 pc shares to Indiabulls Housing Finance

Press Trust of India  |  New Delhi 

(LVB) Monday said it plans to nearly 5 per cent equity shares on a preferential basis to Housing Finance Ltd.

However, it is not to be considered as a capital raising means before their proposed merger.

"The is proposing to make a preferential allotment to Housing Finance to the extent of 4.99 per cent of the bank's post-money equity," LVB said in a statement.

It is expected that the relevant date (of allotment of equity) could be by the end of April 2019, it added.

"This does not presuppose any capital augmentation on account of the proposed merger, which would only conclude after receipt of all regulatory approvals," it added.

Earlier this month, the had announced its merger with Housing Finance Ltd (IBHL) in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach.

The board of LVB has approved the merger with IBHL in which shareholders of the will get 14 shares of IBHL for every 100 shares they hold.

The combined entity, with employee strength of 14,302, will have a loan book size of Rs 1.23 lakh crore for the first nine month period of 2018-19.

After the proposed merger, IBH will get access to low cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.

However, the Reserve Bank (RBI) is yet to examine the merger proposal of the bank and the NBFC.

LVB shares closed 1.65 per cent down at Rs 89.20 on BSE, while IBHL closed 0.55 per cent up at Rs 834.65 apiece.

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

First Published: Mon, April 15 2019. 20:10 IST
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