Lakshmi Vilas Bank rallies 16% on receiving non-binding offer from Clix Group

Laxmi Vilas Bank

Shares of Lakshmi Vilas Bank (LVB) Ltd surged as much as 16.01% after the bank said it has received an indicative non-binding offer from Clix Group.

At 11.50 am, Lakshmi Vilas Bank shares were trading at Rs20.30 apiece, up 14.04% from its previous close, while the benchmark index, Sensex, gained 0.77% to 40,493.04.

“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 Bank will continue to share information on material developments as and they materialize,” the lender said in a release to the exchange after market hours.

Earlier on 15 June, 2020, Lakshmi Vilas Bank said that it had received preliminary, non-binding letter of intent (LoI) from Clix Capital Services & Clix Finance India (collectively the Clix Group). On 15 September, 2020, the bank informed that the mutual due diligence process for the proposed amalgamation of Clix Group with the bank was substantially complete and the parties were in discussions on the next steps.

Lakshmi Vilas Bank (LVB) on 26 September, 2020, announced that its shareholders have voted against the appointment of seven directors including its chief executive officer to the board. The shareholders rejected the appointments of S. Sundar as the managing director and chief executive officer; N. Saiprasad, K.R. Pradeep and Raghuraj Gujjar as non-executive and non-independent directors; and B.K. Manjunath, Gorinka Jaganmohan Rao and Y.N. Lakshminarayana Murthy as non-executive and independent directors. The shareholders also disapproved the appointment of P. Chandrasekar LLP, Chartered Accountants, Bangalore, as the statutory auditors of LVB. These appointments were taken up for voting at the bank’s annual general meeting on 25 September, 2020.

On 27 September, 2020, the Reserve Bank of India approved that day-to-day affairs of the bank will be run by a Committee of Directors (CoD) composed of three independent directors. Meeta Makhan would be the chairperson of the committee of directors and Shakti Sinha and Satish Kumar Kalra would be members of the committee.

The bank reported a loss of Rs112.28 crore in Q1 FY21 compared with a loss of Rs237.25 crore recorded in Q1 FY20. Total income during the quarter declined 20.4% Y-o-Y to Rs538.84 crore.

LVB is a private sector commercial bank. The bank provides a variety of services, including corporate banking, commercial and personal banking, retail banking, NRI services, insurance and development banking.

News Source: livemint

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