Indiabulls Housing front runner to pick up a minority stake in Lakshmi Vilas Bank
Indiabulls Housing Finance has emerged as the front runner to pick up a minority stake in Lakshmi Vilas Bank (LVB). The private sector lender has called fundraising board meeting on March 8. They added that Indiabulls Housing Finance will acquire the stake in LVB though a share swap deal. The reported also said that LVB plans to utilise the fund raised for tier I capital.
“PE players are also keen to invest in LVB. Stake sale of over 5 per cent would require approval from the RBI. KPMG, JPMorgan heard to be advisors to the transaction,” Sources said. Indiabulls denied the development, saying they don’t react to market speculation. Reacting to the report, LVB said: “We are evaluating a fund raising exercise currently, cannot comment on any specific transaction. We are also exploring options to maximise shareholder returns.”