Lakshmi Vilas Bank share rose 16% on Friday after the lender said it had received an indicative non-binding offer from the Clix Group.
The bank is undergoing the process of considering and evaluating the proposed amalgamation with Clix Capital Services, Clix Finance India, and Clix Housing Finance.
The bank in June 2020 had inked a non-binding agreement with the Clix Group for amalgamation. Later, the parties extended the validity of the agreement to September 15 citing the Covid-19 lockdown.
"Further to the process of considering and evaluating the proposed amalgamation with M/s. Clix Capital Services Private Limited ("Clix Capital"), M/s. Clix Finance India Private Limited ("Clix Finance") and M/s. Clix Housing Finance Private Limited ("Clix Housing") (collectively, the "Clix Group"), we are glad to inform that, the Bank has received an indicative non-binding offer from Clix Group," the Chennai-based lender said in a bse filing to the BSE.
Following the updates, LVB stock opened with a gain of 7.02% today at Rs 190.5 and later touched an intraday high of Rs 20.65, rising 16.01 intraday on BSE. The stock of Lakshmi Vilas Bank closed 7% higher yesterday at Rs 17.80.
The stock also hit an intraday low of Rs 19 today. Market capitalisation of the bank stood at Rs 644.81 crore as of today's session.
LVB stock has risen 0.79% in the last 2 days. The stock has risen 11% since the beginning of the year. Lakshmi Vilas Bank share price trades higher than 5, 100 and 200-day moving averages but lower than 20 and 50-day moving averages.
The South-based lender added later that it would continue to share information on material developments as and when they materialise.
The lender's shareholders on Sept 25, 2020, voted against the appointment of seven directors including the chief executive and managing director S Sundar. The Reserve Bank appointed a three-member Committee of Directors post the removal, comprising independent directors Meeta Makhan, Shakti Sinha and Satish Kumar Kalra.