INSUBCONTINENT EXCLUSIVE:
Lakshmi Vilas Bank said the merger will create a large and diverse asset book (Representational image)Private sector lender Lakshmi Vilas
Bank will merge operations with housing finance firm Indiabulls Housing Finance in a share-swap deal, the companies said in a filing on
Friday.Shareholders of the Chennai-based bank will get a 0.14 share in Indiabulls for every share held in the lender, the companies said.The
merger will create a large, healthy and diverse asset book, Lakshmi Vilas Bank said
It will also allow the merged company to collectively foray into newer businesses that help increase fee income, the lender added.The joint
company will have a net worth of Rs 19,472 crore ($2.81 billion), as of December-end 2018, the housing finance firm said."It is a win-win
deal for both the companies," said AK Prabhakar, head of research, IDBI Capital in Mumbai.Lakshmi Vilas Bank had total assets worth Rs
40,429 crore, as of March 31, 2018, while Indiabulls Housing had total assets of Rs 1.32 lakh crore, as on December 31."Indiabulls will get
a banking tag, which will bring down its cost of funds, so it is a bigger win for them
The merger will give good branding and better pan-India presence for the Tamil Nadu-based Lakshmi Vilas," Mr Prabhakar added.After the
merger, Indiabulls founder and chairman Sameer Gehlaut will be the vice-chairman.Meanwhile, Parthasarathi Mukherjee, managing director and
CEO, Lakshmi Vilas Bank, and Gagan Banga, Indiabulls' vice-chairman and managing director, will be appointed as joint MDs, Indiabulls
said.Indiabulls said it has formed a panel, headed by independent director SS Mundra, to oversee the proposed merger.The announcement was
made after market hours.Shares of Lakshmi Vilas closed 4.98 per cent firmer on the NSE index on Friday, while Indiabulls Housing ended 0.6
per cent higher.($1 = Rs 69.2060)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on
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