LVB shares rise after Cabinet approves merger with DBS India
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
By ETMarkets.com |
Mumbai: Shares of Lakshmi Vilas Bank (LVB) looked up for the first time in seven sessions on Wednesday, after ET Now reported that the Cabinet has approved the lender’s merger plan with DBS India.
In reaction, the LVB shares reversed early losses, and rose 2.05 per cent at Rs 7.45, while benchmark Sensex was down 0.40 per cent at 44,343.98 points. The stock is still down 40 per cent over the last one week, and 55 per cent over the last one month.
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
According to the draft merger scheme, the entire paid-up share capital of the bank will be written off upon merger. This move has shocked the bank's equity investors and some of them have threatened to seek legal remedies.
In reaction, the LVB shares reversed early losses, and rose 2.05 per cent at Rs 7.45, while benchmark Sensex was down 0.40 per cent at 44,343.98 points. The stock is still down 40 per cent over the last one week, and 55 per cent over the last one month.
On November 17, the RBI unveiled a draft merger scheme under which DBS will infuse Rs 2,500 crore regulatory capital into the cash-strapped LVB. The regulator wants the entire process to be completed by December 16.
According to the draft merger scheme, the entire paid-up share capital of the bank will be written off upon merger. This move has shocked the bank's equity investors and some of them have threatened to seek legal remedies.
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