The board of Lakshmi Vilas Bank on April 12 approved the merger with Indiabulls Housing Finance.
Vaibhavi Khanwalkar does 3 Point Analysis on the deal and what it means for investors.
The stock gained 19 percent in last one month, but lost 38 percent in last one year. It was quoting at Rs 837, down Rs 21.90, or 2.55 percent on the BSE, at 11:26 hours
While IBH’s past experience with RBI is a concern, there are chances that the deal will receive approval in the current scenario
The board of LVB, on April 5, had approved the merger with IHB, in a share swap deal. Post the notification to exchanges, it's managing director and chief executive officer Parthasarathi Mukherjee told media on a concall that the decision of the board was "unanimous."
The merged entity's net worth will be Rs 19,472 crore, with 14,302 employees and a loan book of Rs 1.23 lakh crore.
The fund mop-up in the March quarter of the previous fiscal was through various sources, including securitisation, bonds and bank borrowing, an official said.
Macquarie cut its target price for Indiabulls Housing Finance to Rs 836 from Rs 1,170 apiece.
Over 300 stocks have hit fresh 52-week low on the BSE including names like NALCO, Indiabulls Housing Finance, Vedanta, Indian Bank, NTPC, IDBI Bank, JSW Steel, Tata Chemicals, Coal India and Balkrishna Industries.
"With this investment, the total equity capital in the bank will be Rs 7,000 crore," Indiabulls Housing Finance said in a regulatory filing.
Motilal Oswal is bullish on Indiabulls Housing Finance has recommended buy rating on the stock with a target price of Rs 900 in its research report dated February 01, 2019.
The company attributed the fall in net income to the one-time gain in the December 2017 quarter, when it had sold a third of its stake in Oak North Bank to GIC of Singapore for Rs 767.78 crore, booking a one-time profit of Rs 542.44 crore, boosting its bottomline.
Gagan Banga, Managing Director of Indiabulls Housing Finance, said the company has taken some small developers to the NCLT.
Contra trades can be considered such as going long on the decline on the Nifty Jan Futures in the 10,500-10,550 zone and keeping a strict stop loss around the 10,480 levels.
It is time to remain on sidelines and wait for a breakout above 10950 to go long and a breakdown below 10600 to go short on the index.
Disposing of the complaint, the regulator said prima facie the case does not contravene the provisions of Sections 3 and 4 of the Competition Act.
The breadth of the market favoured the declines with 742 stocks advancing and 858 declining while 459 remained unchanged. On the BSE, 969 stocks advanced, 993 declined and 95 remained unchanged.
MF industry assets grew to Rs 23.4 lakh crore, on the back of improved inflows into liquid funds and steady equity markets
Investors will be better off not to touch high beta names until some clarity emerges with respect to General Elections 2019
The general rule is that when a stock is trading below its 5-year PE, it usually indicates sluggish movement in price, which is further linked to earnings potential
According to the statement, the company is in the process of issuing secured, redeemable, non-convertible debentures of face value Rs 10 lakh each aggregating Rs 20,000 crore, on a private placement basis.
The Nifty rollover for December series stand at 48.62 percent so far, slightly lower than the 3-month average of 68 percent, ahead of expiry.