Lakshmi Vilas Bank share closes up 10% after lender draws closer to Clix Group merger
Lakshmi Vilas Bank shares gained 10% in Wednesday’s trade after it said mutual due diligence for Clix Group’s merger with the lender was completed. Lakshmi Vilas Bank share opened 7.86% higher and hit an intraday high of Rs 22.35, rising 9.83% from the last close of Rs 20.35, also its intraday low. . She closed at the same level today.
The market capitalization of the company stood at Rs 752.56 crore at today’s meeting. LVB shares gained after 2 consecutive days of decline. The stock is up 29.57% year-to-date and has lost 45% in one year.
The share is above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. There were only buyers and no seller for the part. The stock later closed up 10% at Rs 22.35. In total, 4.51 lakh shares changed hands, representing Rs 1 crore turnover on BSE.
“We wish to inform that the mutual due diligence is practically complete and that the parties are in discussions on the next steps. The Bank will continue to share any additional information as it materializes,” the bank said in a statement. communication to exchanges.
On June 15, 2020, the bank signed a preliminary and non-binding Letter of Intent (LOI) with Clix Capital Services Private Limited and Clix Finance India Private Limited for the proposed merger of Clix Group with the lender.
Under the non-binding letter of intent, the proposed merger is subject to the completion of mutual due diligence, regulatory and other customary approvals. In accordance with the mutual agreement between the parties, the exclusivity period has been extended until September 15 due to the prevailing pandemic situation.
Clix Capital is a financial services company that offers different types of loans.
It is headed by Pramod Bhasin who acquired the company in 2016 from GE Capital. The private equity firm AION Capital Partners is a key shareholder of the company.
Earlier this month, the bank said it plans to raise up to Rs 1,500 crore to finance the growth of the business and increase foreign ownership to 74%. The Chennai-based lender has said it will seek approval of its shareholders’ proposals at the next annual general meeting (AGM) on September 25.