India: Lakshmi Vilas Bank board approves merger with Indiabulls Housing

Photo: Mint

Private sector lender Lakshmi Vilas Bank Ltd (LVB) on Friday said that its board had approved a merger with mortgage financier Indiabulls Housing Finance Ltd, the bank said in a filing to stock exchanges.

According to the filing, the swap ratio for the merger has been fixed at 1:014, which means that for every 100 shares of LVB held by shareholders, they will be entitled to receive 14 shares of Indiabulls Housing Finance.

The merger is subject to the receipt of approval from the Reserve Bank of India (RBI) and all other regulatory approvals.

As of 31 March, LVB had total assets of ₹40,429 crore and capital and reserves of ₹2,328 crore, while Indiabulls had an asset base of ₹1,31,903 crore.

The announcement was made after market hours.

On Friday, shares of LVB closed at ₹92.75, up 4.98% on the BSE, wWhile shares of Indiabulls Housing Finance closed at ₹903.15, up 0.53%.

This article was first published on livemint.com