Lakshmi Vilas Bank was locked in 5 percent upper circuit on June 16 after the bank signed a preliminary, non-binding Letter of Intent (LOI) with Clix Capital Services Private Limited and Clix Finance India Private Limited in relation to the proposed amalgamation of Clix Group with the Bank.
At 10:00 hrs, Lakshmi Vilas Bank was up 4.97 percent to Rs 16.06 on the BSE.
Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence in an exclusive window of 45 days and will be subject to regulatory and other customary approvals, the company said in a note.
In the event the discussions between the contracting parties in relation to the proposed transaction are successful and definitive agreements are executed, we will make appropriate disclosures as required under the provisions of applicable law.
Clix Capital is majority-owned by Mumbai-based private equity firm AION Capital Partners, which is a partnership between New York-based Apollo Global Management and ICICI Venture, a unit of India's ICICI Bank.
LVB had planned to merge with Indiabulls Housing Finance Ltd late last year but the plan fell through after it failed to secure the approval of India's central bank.
LVB's capital adequacy ratio stood at 3.46 percent at the end of December, it said in the release of its quarterly results in February, while the percentage of gross bad loans to total assets had inched up to 23.27 percent.
Moneycontrol has not independently verified the report
(With inputs from Reuters)
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