Share of Lakshmi Vilas Bank rose nearly 5 percent in early trade on March 11 after Kotak Mahindra Bank entered the race to acquire majority stake in the company.
There were pending buy orders of 1,255,234 shares, with no sellers available.
Kotak Mahindra Bank is keen to play the white knight and rescue the fund-starved Chennai-based Lakshmi Vilas Bank (LVB) as part of a proposed transaction under the supervision of the Reserve Bank of India (RBI), multiple sources have told Moneycontrol.
“Kotak Mahindra Bank is a late entrant in the race for Lakshmi Vilas Bank and is evaluating the acquisition of a majority stake. It has joined other strategic and private equity suitors,” one of the sources said.
The bank submitted a proposal for Lakshmi Vilas Bank to the RBI, which has held discussions with other interested parties as well, another source said. “If the deal fructifies, it can further bolster Kotak Mahindra Bank’s presence in South India,” the source added.
Also Read - Exclusive | Kotak Mahindra Bank joins race for Lakshmi Vilas Bank
Moneycontrol was the first to report on February 6 that DBS Bank India, Indostar Capital Finance, which is backed by Everstone Capital and recently struck a fund infusion deal with Canada’s Brookfield, and a private sector lender had joined the race for Lakshmi Vilas Bank.
Other reports named Singapore’s Temasek and US-based Tilden Park as potential suitors.
At 09:20 hrs, Lakshmi Vilas Bank was quoting at Rs 14.35, up Rs 0.65, or 4.74 percent on the BSE.
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