Lakshmi Vilas Bank gains nearly 5% on fund raising plan1 min read . Updated: 07 Sep 2020, 01:58 PM IST
- The LVB stock rises 4.61% to Rs20.40 on the BSE and 3.33% to Rs20.15 on the NSE
- The lender to seek approval from its shareholders in its annual general meeting on 25 September
NEW DELHI : Shares of private sector lender Lakshmi Vilas Bank Ltd. (LVB) jumped nearly 5% in early trade on Monday after the bank announced its plan to raise up to Rs1,500 crore and increase foreign shareholding up 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 for the proposals from its shareholders in its annual general meeting (AGM) on 25 September. Lakshmi Vilas Bank’s board of directors in its meeting on 26 August accorded approval for fund raising through issue of equity shares, GDRs, ADRs foreign currency convertible bonds (FCCBs), preference shares convertible into equity shares among others in one or more tranches.
“Whilst no specific instrument has been identified at this stage, in the event, the issue will be structured in such a manner that the proceeds of the same would not exceed Rs1,000 crore," the bank said. It will also seek shareholders' nod for raising another Rs500 crore through debt securities.
To meet its capital requirements, LVB had sought the Reserve Bank of India’s (RBI) approval to amalgamate Indiabulls Housing Finance and Indiabulls Commercial Credit Ltd into itself in May 2019. However, it could not get a regulatory nod for the amalgamation.
In June this year, the lender signed a non-binding agreement with Clix Capital Services Private Ltd and Clix Finance India Private Ltd for the amalgamation with itself for an estimated value of Rs1,900 crore.
At 1:43 pm, shares of Lakshmi Vilas Bank Ltd were trading at Rs19.55 apiece, up 0.26%, on the BSE; and at Rs19.65 apiece, 0.77% higher, on the NSE.
The BSE Sensex index was flat at 38,373.03; and the Nifty 50 index at11,334.65.
For the fiscal year 2020, the LVB posted a net loss of Rs836.04 crore.