Share of Lakshmi Vilas Bank gained over 9 % intra day despite Brickwork Ratings (BWR) India downgrading the rating of lender. The rating was lowered from BWR BB+ (Credit Watch with Developing Implications) to BWR B+ (Credit Watch with Negative Implications) for its unsecured redeemable Non-Convertible Subordinated Lower Tier II Bonds - Series VII (Option B) of Rs 50.50 crore.
The share opened with a loss of 4.22% at Rs 15.90 today against previous close of Rs 16.60 on BSE. The stock touched an intraday high of Rs 18.2, rising up to 9.64%.
The stock touched an intraday low of Rs 15.65 , down 5.72%.
The share stands higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
The stock has lost 37% in one year and gained 3.19% since the beginning of this year.
Total 2.39 lakh shares changed hands amounting to turnover of Rs 40.71 lakh on BSE.
Later, the share ended 7.23% higher at Rs 17.80. Market cap of the firm rose to Rs 567 crore. The rating downgrade factors in the rejection of seven directors of the bank, including the interim managing director and chief executive officer of the bank, by the bank's shareholders; the bank's substantially weak capital position; very high levels of gross non-performing assets (NPAs) and continuous losses reported by the bank for the past IO quarters, except Q4FY20.
BWR has essentially relied on audited financials up to FY20 and LVB's unaudited financials of QI FY2 I, developments in the bank during HIFY21, publicly available information and information clarifications provided by the bank's management.
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