Tamil Nadu-based Lakshmi Vilas Bank (LVB) will merge its operations with housing finance lender Indiabulls Housing Finance Ltd (IBHF) in a share-swap deal, the companies said in a press note, post market hours on Friday.
According to the merger deal, shareholders of the Lakshmi Vilas Bank will get a 14 share in Indiabulls Housing Finance for every 100equity shares held in the bank, it said
The joint company will have a net worth of Rs19,472-Crore, as of Dec-end 2018, Indiabulls said. The merged entity would be known as the “Indiabulls Lakshmi Vilas Bank”.
According to the companies, the LVB had total assets worth Rs.40,429 crore, as of March 31, 2018, while the IBHF had total assets of Rs1.32 lakh crore, as on Dec31.
On Friday, share price of Lakshmi Vilas Bank rose at Rs92.80 up 4.98% against previous close of Rs88.40 on the NSE, whereas Indiabulls Housing share price quoted at Rs906.80, up Rs.8.65 or 0.96% as against its last close of Rs898.15.