Lakshmi Vilas Bank shares hit 10% upper circuit on development over merger with Clix Group

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Lakshmi Vilas Bank shares hit 10% upper circuit on development over merger with Clix Group

Lakshmi Vilas Bank shares hit an intra-day high of 10 percent on Wednesday, locked in upper price band after the lender said that the mutual due diligence process for a merger with Clix Group is substantially complete and both parties are in discussions on the next steps.

“We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps. The Bank will continue to share any further information as and when they materialize,” the LVB said in a regulatory filing.

In June, the lender had received a preliminary, non-binding letter of intent (LoI) from Clix Capital Services Private Ltd & Clix Finance India Private Ltd.

Under the non-binding LOI, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals. As per the mutual understanding between parties, the exclusivity period was extended till September 15 due to the prevailing pandemic situation.

CNBC-TV18 had reported quoting sources that the lender may be able to raise Rs 1,200- Rs 1,500 crore of investment from AION Capital-backed NBFC Clix Capital.

Read here: Clix Capital investment may fetch Lakshmi Vilas Bank Rs 1,500 crore

In October last year, the Reserve Bank of India (RBI) had turned down Lakshmi Vilas Bank’s proposed merger with Indiabulls Housing Finance.

At 11:50 am, the stock price of Lakshmi Vilas Bank were at the upper circuit of 10 percent at Rs 22.35 apiece on the BSE. There were pending buy orders of 2,63,503 shares, with no sellers available.

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