Trade Nivesh: Shares of Lakshmi Vilas BankNSE 0.45 % declined 1 per cent in Tuesday’s trade after the bank announced its plan to allot nearly 5 per cent shares to IndiabullsNSE -1.25 % Housing Finance (IBHL) on a preferential basis.
Following the development, shares of Lakshmi Vilas Bank fell 0.95 per cent lower to Rs 88.35, whereas those of Indiabulls Housing Finance NSE 0.62 % were ruling at Rs 833, down 0.20 per cent.
Earlier this month, the private sector lender had announced its merger with Indiabulls Housing Finance in a share-swap deal.
The board of LVB has approved the merger with IBHL in which shareholders of the bank will get 14 shares of IBHL for every 100 shares they hold.
The Reserve Bank (RBI) is yet to examine the merger proposal of the bank and the NBFC.
The combined entity will have a loan book size of Rs 1.23 lakh crore for the first nine-month period of 2018-19.
After the proposed merger, IBH will get access to low-cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.
Following the development, shares of Lakshmi Vilas Bank fell 0.95 per cent lower to Rs 88.35, whereas those of Indiabulls Housing Finance NSE 0.62 % were ruling at Rs 833, down 0.20 per cent.
Earlier this month, the private sector lender had announced its merger with Indiabulls Housing Finance in a share-swap deal.
The board of LVB has approved the merger with IBHL in which shareholders of the bank will get 14 shares of IBHL for every 100 shares they hold.
The Reserve Bank (RBI) is yet to examine the merger proposal of the bank and the NBFC.
The combined entity will have a loan book size of Rs 1.23 lakh crore for the first nine-month period of 2018-19.
After the proposed merger, IBH will get access to low-cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.
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