The board of Lakshmi Vilas Bank (LVB) has given approval for raising funds through issue of 1.68 crore equity shares with a face value of ₹10 each to Indiabulls Housing Finance Ltd. (IBHF).
The allotment of shares to IBHF would be made subject to shareholders’ approval, the bank said in a regulatory filing.
“The shares will be issued on a preferential basis at a price that will be determined in accordance with SEBI Regulations 2018. The fresh issue will constitute 4.99% of total shares,” said a top bank executive.
LVB’s board recently gave approval for the bank’s merger with IBHF to strengthen working capital needs.
At Friday’s board meeting, it was decided to defer raising capital through issue of Basel III compliant tier-I debt instruments.