Lakshmi Vilas Bank tie-up with Indiabulls Housing Finance.

By Abhay Harish Shah , Realty Quarter

In a share swap deal, Lakshmi vilas bank (Indian Private Sector Lender) is going to merge with India bulls (Housing Finance Firm).

The company said “Shareholders of Chennai based bank will get approx 0.14 share in India bulls for each share held.

Further, Lakshmi Vilas Bank said, this merger will create a healthy & diverse asset book. This collaboration can help to fetch some newer businesses that would help to add up some income.

The merger will have a stronger lead as well established Housing Finance is enjoying its presence in northern and western areas and now is going to take a step into the southern area with Lakshmi Vilas Bank.

Lakshmi Vilas Bank had complete assets worth 404.29 billion rupees, as of March 31, 2018, while India bulls Housing had all out resources of 1.32 trillion rupees, as on December 31.

The total net worth which both the will have jointly would be 194.72 billion rupees ($2.81 billion), as of Dec-end 2018.

Expert Mr. AK Prabhakar (HOR of IDBI Capital in Mumbai) says “It is a win-win deal for both the companies”.

He also explained that “India bulls will get a banking tag, which will cut down its expenditure of funds, so it is greater success for them. The merger will give great marking and better pan-India nearness for the Tamil Nadu-based Lakshmi Vilas.”

India bulls said it has shaped a board, headed by Independent Director SS Mundra to regulate the proposed merger. Also, Post the merger, India bulls originator and Chairman Sameer Gehlaut will be the vice-chairman.

Parthasarathi Mukherjee, managing director and CEO, Lakshmi Vilas Bank, and Gagan Banga, India bulls’ vice-chairman and commanding manager, will be named as joint MDs, India bulls said.