India: Lakshmi Vilas Bank’s deal with Clix Group delayed due to COVID-19 situation

Indian hundred rupee notes rolled in a bundle. Photo: Rupixen/Unsplash

Private sector lender Lakshmi Vilas Bank on Thursday said its deal with the Clix Group might be delayed owing to covid-19 and both parties have agreed to extend the exclusivity period till 15 September 2020.

Meanwhile, the bank’s capital adequacy ratio (CAR) as per Basel III guidelines contracted to 0.17 % as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of 112.28 crore in the June quarter of FY21, compared to a loss of 237.25 crore in the same period last year.

“Despite logistical challenges arising due to COVID-19 situation, we have made significant progress with Clix Group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank,” the bank said in a regulatory filing.

However, there may be slight delay in the mutual due diligence and preparation of documents for regulatory requirements due to the covid-19 situation and travel restrictions, it said.

“Hence, both the parties mutually agreed to extend the exclusivity period till 15 September 2020. The bank will continue to share information on the developments for funds raising in public domain as and when they materialise,” it said.

On 15 June, the bank had said it signed preliminary, non-binding letter of intent (LoI) with Clix Capital Services Pvt Ltd and Clix Finance India Pvt Ltd 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 in exclusive window of 45 days, and will be subject to regulatory and other customary approvals, the bank had said.

The article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.