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Lakshmi Vilas Bank share closes 10% higher after lender inches closer to Clix Group merger

BusinessToday.In     September 16, 2020

Shares of Lakshmi Vilas Bank gained 10% in Wednesday's trade after it said mutual due diligence for amalgamation of Clix Group with the lender was completed. Lakshmi Vilas Bank stock opened 7.86% higher and touched an intraday high of Rs 22.35 rising 9.83% against the last closing of Rs 20.35 , also its intraday low.It closed at same level today.

Market capitalisation of the firm stood at Rs 752.56 crore as of today's session. LVB stock has gained after 2 days of consecutive fall.The stock has risen 29.57% since the beginning of the year and lost 45% in one year.

The share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. There were only buyers and no sellers for the share. Later, the share closed 10% higher at Rs 22.35. Total 4.51 lakh shares changed hands amounting to turnover of Rs 1 crore on BSE.

"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.

On June 15,2020, the bank inked a preliminary, non-binding letter of intent (LOI) with Clix Capital Services Private Limited and Clix Finance India Private Limited for proposed amalgamation of Clix Group with the lender.

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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.

Clix Capital is a financial services firm which offers  various types of loans.

It is headed by Pramod Bhasin who acquired the business in 2016 from GE Capital. Private equity firm AION Capital Partners is a key shareholder in the company.

Earlier this month, the bank said it plans to raise up to Rs 1,500 crore to fund business growth and increase foreign shareholding to up to 74%. The Chennai-based lender said it would seek approval for the proposals from its shareholders in the upcoming annual general meeting (AGM) on September 25.

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