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Mumbai: Shares of Lakshmi Vilas Bank (LVB) looked up for the first time in seven sessions on Wednesday, after ET Now reported that the Cabinet has approved the lender’s merger plan with DBS India.
In reaction, the LVB shares reversed early losses, and rose 2.05 per cent at Rs 7.45, while benchmark Sensex was down 0.40 per cent at 44,343.98 points. The stock is still down 40 per cent over the last one week, and 55 per cent over the last one month.
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
According to the draft merger scheme, the entire paid-up share capital of the bank will be written off upon merger. This move has shocked the bank's equity investors and some of them have threatened to seek legal remedies.
In reaction, the LVB shares reversed early losses, and rose 2.05 per cent at Rs 7.45, while benchmark Sensex was down 0.40 per cent at 44,343.98 points. The stock is still down 40 per cent over the last one week, and 55 per cent over the last one month.
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
According to the draft merger scheme, the entire paid-up share capital of the bank will be written off upon merger. This move has shocked the bank's equity investors and some of them have threatened to seek legal remedies.
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1 Comment on this Story
 | Suresh Kamath2 minutes ago How does such LVB shares rise benefit the Stakeholders as NONE would be eligible for the SWAP with DBS and as per RBI announcement all existing Equity holders of the LVB has NO gains to speak of and such WILD GOOSE CHASE of LVB Must be STOPPED at once |
