Lakshmi Vilas Bank surges 41% in a week on report US fund house eyes stake

Shares of Lakshmi Vilas Bank had been locked in five per cent upper circuit at

Shares of Lakshmi Vilas Bank had been locked in five per cent upper circuit at Rs 20.ninety on the BSE on Wednesday immediately after stories emerged expressing that a US fund home is eyeing a huge stake in the income-strapped financial institution.

The non-public sector lender’s stock has been frozen upper circuit for the fourth straight working day. In the previous week, the stock has rallied forty one per cent from one per cent rise in the S&P BSE Sensex.

The investing volumes on the counter almost doubled with a put together 726,846 shares transforming arms on the NSE and BSE till eleven:21 am. There had been pending buy orders for one.27 million shares on both of those the exchanges, information demonstrates.

According to a report by The Economic Periods, US fund home Tilden Park Capital Management has sounded out the Reserve Bank of India (RBI) for buying a sizeable stake in Lakshmi Vilas Bank, an outdated non-public sector loan provider which is scouting for buyers to shore up capital.

However, Lakshmi Vilas Bank mentioned it has not received any proposal from any entity for any expense in the financial institution.

“Tilden Park Capital Management, a US primarily based entity requested for selected regulatory clarifications pertaining to expense in Banks’ shares and the Bank facilitated a assembly for them straight with the RBI,” Lakshmi Vilas Bank mentioned on clarification with reference to the Information item showing up in ‘The Economic Periods‘ on eleven.02.2020.

Very last week, Business enterprise Standard experienced documented that the capital-starved non-public sector loan provider may soon have a suitor willing to pump funds into it. According to sources, leading executives at the Chennai-primarily based financial institution submitted a record of prospective buyers to the RBI, the report mentioned.

Lakshmi Vilas Bank experienced then clarified that the financial institution was not aware of any such curiosity revealed by providers viz., DBS Bank India or lndostar Capital Finance or Capri World or any other non-public sector financial institution as pointed out in the content articles.