Fri. Mar 29th, 2024
Lakshmi Vilas Bank

On Monday, Lakshmi Vilas Bank (LVB) informed that it had acquired an initial, non-binding letter of intent (LoI) from AION Capital-backed Clix Capital Services and Clix Finance India for an advanced capital-raising transaction.

LVB, revealed in a statement that the bank and the involved parties will be carrying out due commitment, to the stock exchanges, and will conclude “suitable disclosures as  under the provisions of applicable law” in the event of the execution of definitive agreements.

Private equity player AION Capital, through the two non-banking financial units, is prepped up to guide the deal as it gears up to buy over a 51 per cent stake for Rs 1,400-1,600 crore, according to the sources. Meanwhile, LVB’s managing director and chief executive officer S Sundar refused to give details, sources confirmed.

LVB confirmed its board has given a thumbs up to the Clix offer, on June 12, for continued operations on Monday. The bank’s statement also revealed that the proposed transaction would be subject to regulatory and other customary approvals.

Earlier in October 2019, the Reserve Bank of India (RBI) had refused to give a heads-up for the collaboration of Indiabulls Housing finance and its subsidiary with LVB. Since then, the bank has been searching for new investors.

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