Lakshmi Vilas Bank earns nearly 5% on fundraising plan

0
19

NEW DELHI :
The shares of private sector lender Lakshmi Vilas Bank Ltd. (LVB) jumped nearly 5% at the start of trading on Monday after the bank announced its plan to raise to Rs1,500 crore and increase foreign ownership to 74%.

The LVB stock rose 4.61% to Rs20.40 on the BSE and 3.33% to Rs20.15 on the NSE.

The Chennai-based lender will seek approval of its shareholders’ proposals at its annual general meeting (AGM) on September 25. At its meeting on August 26, the board of directors of Lakshmi Vilas Bank approved the fundraising by issuing equity shares, GDRs, ADRs, convertible bonds in foreign currencies (FCCB), d ‘preferred shares convertible into participating shares, among others in one or more tranches.

“Although no specific instrument has been identified at this stage, in this case the issue will be structured so that the proceeds thereof do not exceed Rs 1,000 crore,” said the bank. It will also seek out shareholders. nod to raise another Rs500 crore through debt securities.

To meet its capital requirements, LVB had sought approval from the Reserve Bank of India (RBI) to merge Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd in May 2019. However, it was unable to secure a wink regulatory eye for the merger.

In June of this year, the lender signed a non-binding agreement with Clix Capital Services Private Ltd and Clix Finance India Private Ltd for the merger with itself for an estimated value of Rs1900 crore.

At 1:43 p.m. shares of Lakshmi Vilas Bank Ltd were trading at Rs 19.55 each, up 0.26%, on BSE; and at Rs19.65 each, 0.77% more, on the NSE.

The BSE Sensex index was stable at 38,373.03; and the Nifty 50 index at 11,334.65.

For fiscal year 2020, the LVB recorded a net loss of Rs836.04 crore.

To subscribe to newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here