Lakshmi Vilas Bank shares jumped 10% on Wednesday, hitting the upper circuit at ₹10:35 p.m. each, after the private lender said the mutual due diligence process for Clix Group’s proposed merger with the bank was all but complete.
“The proposed merger is subject to the completion of mutual due diligence, regulatory approvals and other customary approvals,” Lakshmi Vilas bank said in a regulatory filing.
“We would like to inform that the mutual due diligence is almost complete and that the parties are in discussions on the next steps. The Bank will continue to share any additional information as it materializes, ”he added.
In June, Lakshmi Vilas Bank said it had received a preliminary, non-binding Letter of Intent (LoI) from Clix Capital Services & Clix Finance India (collectively the Clix Group).
On July 30, 2020, the bank had informed that, in accordance with the mutual agreement between the parties, the exclusivity period had been extended until September 15, 2020 due to the current pandemic situation.
The bank reported a loss of ₹112.28 crore in Q1 FY21 compared to a loss of ₹237.25 crore recorded in Q1 FY20. Total revenue for the quarter decreased 20.4% year-on-year to ₹538.84 crore from ₹677.17 crore.
From the start of the year, Lakshmi Vilas Bank gained 30% against a 5% drop in the benchmark Sensex.