Non-banking financial company (NBFC) LKP Finance today said it has received RBI's approval to sell up to 62 per cent of its equity to Essel group's Dakshin Mercantile Pvt Ltd.
LKP Finance Limited has received Reserve Bank of India's approval for the proposed sale of up to 62 per cent equity shareholding to Dakshin Mercantile Private Limited, an Essel Group company, and change in its management structure, a company release said today.
Earlier, Dakshin Mercantile and LKP Finance had entered into a definitive agreement on May 14, 2018, under which the former agreed to acquire majority equity shareholding in the latter.
After the RBI approval, Dakshin Mercantile would now make an open offer to acquire a minimum 26 per cent equity shares from public shareholders in accordance with SEBI and other applicable regulations.
The open offer for acquisition of 26 per cent representing up to 32,67,842 equity shares will be made at a price of Rs 198 per piece in a cash consideration for an aggregate amount of Rs 64.70 crore.
LKP Finance's Chairman Mahendra Doshi, during the company's board meeting held today updated the board on future plans of the company about alignment with Essel Finance, the possibility of funds infusion into Essel Finance companies post alignment and change of name and registered office post completion of the acquisition.