Indiabulls Housing Finance shares fall 34% on concerns over LVB merger

The RBI placing Lakshmi Vilas Bank under PCA framework amidst the proposed merger, and litigation against the housing financier are perceived negatively by investors

The Indiabulls Housing Finance (IHFL) stock clocked its worst single-day loss since listing and plunged 34.4 per cent to Rs 255.50 on Monday as investors reacted adversely to the regulatory action on Lakshmi Vilas Bank (LVB), with which IHFL is having merger talks. Declining to a six-year low, experts say the worst may not be over for IHFL. Selling at the IHFL counter on Monday is said to be the highest since 2013. The Reserve Bank of India (RBI) on Saturday placed LVB under prompt corrective action (PCA).

Shares of Indiabulls Real Estate and Indiabulls Ventures too fell 10-20 per cent