Lakshmi Vilas: CCI okays merger with IBH; hits upper circuit

The regulator for fair business practices, the Competition Commission of India (CCI) has approved the scheme of amalgamation of Indiabulls Housing Finance Limited (IBH) and Indiabulls Commercial Credit Limited (ICCL) with Lakshmi Vilas Bank Limited (LVB). The stock of LVB hits upper circuit limit.

Earlier, the board of LVB had approved the merger with a swap ratio of 14 shares of Indiabulls Housing Finance for every 100 shares of LVB held by the bank's shareholders. The combined entity will have a loan book size of Rs. 1.23 lakh crore initially.

In a run-up to this merger, there was buzz the Indiabulls Group has exited its real estate business. This indicative of the fact that the group now wants to focus solely on financial business. The group is also seeking a banking licence from the Reserve Bank of India.

Reacting to this development, on Friday, the stock of LVB closed at Rs. 63.50 per share, up by 9.96 per cent, locked at its upper circuit limit for the day, while Indiabulls Housing Finance closed at Rs. 610.05 per share, up by Rs. 10.10 or 1.68 per cent on BSE.