Lakshmi Vilas Bank approved the merger with Indiabulls Housing Finance

On Friday, The board of Private sector lender Lakshmi Vilas Bank has approved a scheme of amalgamation with lndiabulls Housing Finance, the companies said in separate stock exchange filings.

The merger will happen for every 100 shares of Lakshmi Vilas Bank of face value Rs 10 while the shareholders will get 14 shares of Indiabulls Housing Finance of face value Rs 2 in a swap deal.

(i. e) For everyone share of Rs 10 each, shareholders of Lakshmi Vilas Bank will receive 0.14 equity share of Rs 2 each of Indiabulls Housing Finance, the bank said.

"The board of directors of Indiabulls Housing Finance Limited at its meeting held today (i.e. 5 th April, 2019) at Mumbai, after considering the report of the Audit committee of Directors of Indiabulls Housing Finance Limited, has considered and approved a scheme of amalgamation between Indiabulls Housing Finance Limited ("the Company" or "IBH" or "Transferee Company") and The Lakshmi Vilas Bank Limited", Indiabulls Housing Finance said in a statement.

"The merger of two organisations will unlock the value through its various synergies that exist exclusively but in unison will create a large and healthy diverse retail asset book, high capital base for strong growth, huge opportunity to  foray into newer businesses that may increase the risk fee income base of amalgamated entity such as  wealth management, asset management and securities, tap into varied but experienced  management and skilled personnel to develop a successful capital accretive model", Lakshmi Vilas Bank said in its filing.

The total assets of Lakshmi Vilas Bank were Rs 40,429 cr and its net worth was Rs 2,328 cr as of december 31, 2018 while Indiabulls Housing Finance had a total asset of Rs 1.32 lakh cr and a net worth of Rs 17,792 cr.