The Competition Commission of India (CCI) has given the go-ahead to Indiabulls Housing Finance merger with Lakshmi Vilas Bank.
The shares of Lakshmi Villas Bank has plunged by 10 percent after CCI approved its merger with Indiabulls Housing Finance.
“The CCI ..at its meeting held on June 20 considered the proposed combination and approved the same under sub-section (1) of Section 31 of the Competition Act, 2002,” Indiabulls said in the filing.
In April, private sector lender Lakshmi Vilas Bank and India Bulls Housing Finance had announced a merger plan in an all stake deal.
As per the deal, the shareholders of Lakshmi Vilas Bank will be entitled to get 14 shares of Indiabulls Housing Finance for every 100 shares they hold. The entity will have a loan book of Rs. 1.23 trillion for the first ninth month period of 2018-19.
The merged entity will be called as ‘Indiabulls Lakshmi Vilas Bank’. It will be amongst the top eight private banks in India by size and profitability.
After the merger, Indiabulls will get cross-selling opportunities, expanded client-base, access to low-cost deposits and geographical diversification.