Lakshmi Vilas Bank said the mutual due diligence process for merger with Clix Group is substantially complete and both parties are in discussions on the next steps.
Lakshmi Vilas Bank share price jumped 10 percent intraday on September 16 after the bank said the mutual due diligence process for 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 bank said in a communication to exchanges.
Earlier, the bank had signed a preliminary, non-binding letter of intent (LOI) with Clix Capital Services Private Limited and Clix Finance India Private Limited as on June 15, 2020, in relation to the proposed amalgamation of Clix Group with the bank.
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.
The stock price was trading at Rs 22.35, up Rs 2.00, or 9.83 percent. It has touched an intraday high of Rs 22.35. There were pending buy orders of 327,077 shares, with no sellers available.
Clix Capital is into financial services offering various types of loans and is headed by Pramod Bhasin who acquired the business in 2016 from GE Capital. Private equity firm AION Capital Partners is a significant shareholder in the company.Early this month, Lakshmi Vilas said it plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74 percent.