Lakshmi Vilas Bank said the mutual due diligence process for merger with Clix Group is substantially complete and both parties are in discussions on the next steps.
Lakshmi Vilas Bank share
price jumped 10 percent intraday on September 16 after the bank said the mutual
due diligence process for merger with Clix Group is substantially complete and
both parties are in discussions on the next steps.
“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.
Earlier, the bank had signed a
preliminary, non-binding letter of intent (LOI) with Clix Capital Services
Private Limited and Clix Finance India Private Limited as on June 15, 2020, in
relation to the proposed amalgamation of Clix Group with the bank.
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.
The stock price was trading at Rs
22.35, up Rs 2.00, or 9.83 percent. It has touched an intraday high of Rs
22.35. There were pending buy orders of 327,077 shares, with no sellers
available.
Clix Capital is into financial
services offering various types of loans and is headed by Pramod Bhasin who
acquired the business in 2016 from GE Capital. Private equity firm AION Capital
Partners is a significant shareholder in the company.
Early this month, Lakshmi Vilas
said it plans to raise up to Rs 1,500 crore to fund business growth and
increase foreign shareholding to up to 74 percent.
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