Lakshmi Vilas Bank will merge with Indiabulls Housing Finance (IBH) subject to RBI and other regulatory and statutory approvals. The transaction would be subject to the approval of shareholders of the Bank, shareholders of the HFC, lenders to the extent required, RBI, CCI, NHB, SEBI and Stock Exchanges, NCLT and any other regulatory authority.
For every one share of Rs 10 each, shareholders of Lakshmi Vilas Bank will receive 0.14 equity share of Rs 2 each of Indiabulls Housing Finance, the bank said in its filing. The merger will create a large, healthy and diverse asset book, said the bank in its statement. It will also allow them to collectively foray into newer businesses that help increase fee income, the bank added. "The merger will create low-cost funding in the form of public deposits and expanded distribution franchise," Indiabulls Housing said in a statement.