Five contenders in line to purchase Lakshmi Vilas Bank stake

0
862

Lakshmi Vilas Bank has shortlisted five investors to purchase a controlling stake from the bank.

lakshmi-vilas-bank-shortlists-five-candidates-to-purchase- stake
Lakshmi Vilas Bank shortlists five investors to purchase controlling stake

Baring Private Equity, Gajja Capital, Bain Capital, The Blackstone Group, and TPG Capital Management are the five investors who have been shortlisted to purchase a controlling stake in the bank. This clearly reflects the interest of private equity companies in investing in India’s financial service sector.

American investment bank J.P Morgan Chase is running the formal process to find an investor who will purchase the controlling stake in the lending bank. According to a report by the Economic Times, the non-binding offers are ranging from Rs.140 to Rs.160 per share. This makes the private lender being valued between Rs.3,592 crore and Rs.4,106 crore.

There were a total of 15 bidders who showed their interest in purchasing a stake in Lakshmi Vilas Bank which included names like Carlyle Group, DBS, Aion Capital, True North and General Atlantic.

The successful investor will make an open offer to the public shareholders of the bank.

The news of Lakshmi Vilas Bank shortlisting five private equity companies to purchase a stake in the bank has had positive effects on Tuesday’s stock trading as the bank’s shares jumped 7%.

A group of seven businessmen from Karur, Tamil Nadu, founded the bank in the year 1926. The bank started functioning under the leadership of VSN Ramalinga Chettiar as it catered to the financial needs of people in and around the region of Karur.

Lakshmi Vilas Bank has since come a long way to become one of the largest lenders in India. The bank currently has a business volume of Rs.64,000 crore with 523 branches all over the country.

Source: Economic Times

You may also like: Lakshmi Vilas Bank ties up with Centrum Group to cater to its wealthy clients

LEAVE A REPLY

Please enter your comment!
Please enter your name here