Lakshmi Vilas Bank rose 7.57% to Rs 92.35 at 11:49 IST on BSE after a media report suggested that five financial investors have been shortlisted to buy a controlling stake in the bank.
Meanwhile, the S&P BSE Sensex was down 176.02 points, or 0.52% to 33,958.36.On the BSE, 1.32 lakh shares were traded in the counter so far compared with average daily volumes of 3.62 lakh shares in the past two weeks. The stock had hit a high of Rs 95 and a low of Rs 91.15 so far during the day. The stock hit a 52-week high of Rs 174.42 on 24 November 2017. The stock hit a 52-week low of Rs 67.95 on 1 October 2018.
According to the media report, five financial investors, including the Blackstone Group, Bain Capital and TPG Capital Management, have been shortlisted to buy a controlling stake in Lakshmi Vilas Bank. Baring Private Equity Asia and home-grown Gajja Capital are the two other contenders left in the penultimate round to acquire the 92-year-old, South-based bank, the report added.
Lakshmi Vilas Bank clarified to the bourses during trading hours today, 23 October 2018, that there has been some speculation in the media about the bank's capital raising programme. The programme is progressing as per plan. The bank has received a number of expressions of interest, to participate in the programme, from high quality investors. The bank's investment advisor, JP Morgan, is sifting through these and has a preliminary short-list. The process continues. The choice of investor(s), quantum of investment and the timing of the closure of the transaction is not known as yet. The bank notes to advise of further progress from time to time.
Lakshmi Vilas Bank reported net loss of Rs 123.87 crore in Q1 June 2018 as against net profit of Rs 66.12 crore in Q1 June 2017. Total income declined 15.07% to Rs 787.51 crore in Q1 June 2018 over Q1 June 2017.
Lakshmi Vilas Bank is a full-fledged commercial bank.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content