Shares of Lakshmi Vilas Bank jumped 10% on Wednesday, hitting the upper circuit at ₹22.35 apiece, after the private lender said that the mutual due diligence process for the proposed amalgamation of Clix Group with the bank is substantially complete.
“The proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals,” Lakshmi Vilas Bank said in a regulatory filing.
“We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps. The Bank will continue to share any further information as and when they materialize,” it added.
In June, Lakshmi Vilas Bank said that it had received preliminary, non-binding letter of intent (LoI) from Clix Capital Services & Clix Finance India (collectively the Clix Group).
On 30 July 2020, the bank had informed that, as per the mutual understanding between parties, the exclusivity period was extended till 15 September 2020 due to prevailing pandemic situation.
The bank reported a loss of ₹112.28 crore in Q1 FY21 as compared to a loss of ₹237.25 crore recorded in Q1 FY20. Total income during the quarter declined 20.4% y-o-y to ₹538.84 crore from ₹677.17 crore.
From the beginning of the year, Lakshmi Vilas Bank gained 30% against a fall of 5% in the benchmark Sensex.