Lakshmi Vilas Bank to allot nearly 5 pc shares to Indiabulls Housing Finance
Lakshmi Vilas Bank (LVB) Monday said it plans to allot nearly 5 per cent equity shares on a preferential basis to Indiabulls Housing Finance Ltd.
Lakshmi Vilas Bank (LVB) Monday said it plans to allot nearly 5 per cent equity shares on a preferential basis to Indiabulls Housing Finance Ltd. However, it is not to be considered as a capital raising means before their proposed merger. "The bank is proposing to make a preferential allotment to Indiabulls 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 private sector lender had announced its merger with Indiabulls 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 bank will get 14 shares of IBHL for every 100 shares they hold.
Watch Zee Business Live here:
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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Earthquake in Meghalaya : 4.0 magnitude quake jolts Meghalaya, tremors felt in Guwahati on Wednesday
Gold and Silver rate today (May 29, 2024): Precious metal futures trade in green; yellow metal above Rs 72,250, white metal above Rs 95,500
40,000 pension per month: How to get Rs 40,000 as pension every month by investing in NPS? Know the calculation
Rs 5,000 and 10,000 monthly deposits give you Rs 3,56,830, and Rs 7,13,659 on maturity in this small savings scheme
Tata Steel final dividend: Steelmaker announces 360% dividend alongwith Q4FY24 earnings, check record and payment dates
Gold and Silver rates today (May 27, 2024): MCX gold jumps after sharp losses last week, silver nears Rs 92,100/kg levels
Hindustan Unilever, Polycab India and 3 other stocks can offer up to 50% return in 1 year - Check targets by brokerage
Shark Tank India: This startup gets blank check offer as revenue soars 10 times in 15 months, resulted in clash between judges
06:51 AM IST