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IBULHSGFIN - Indiabulls Housing Finance News Story

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Last Trade - 16/04/21

Sector
Financials
Size
Mid Cap
Market Cap £716.8m
Enterprise Value £6.39bn
Revenue £984.9m
Position in Universe 328th / 3109

Indian lender Lakshmi Vilas Bank approached by potential investor

Mon 15th June, 2020 11:26am
MUMBAI, June 15 (Reuters) - Indian private lender Lakshmi
Vilas Bank  LVLS.NS  said on Monday it had been approached by
Clix Capital but gave no details after local media reported that
the finance company had proposed taking a significant stake in
LVB.
    LVB is in need of capital and has been trying to secure a
buyer since last year.
    It issued its statement via the stock exchange after the
Business Standard newspaper said Clix had proposed taking a
majority stake in LVB, while The Economic Times said it had
proposed buying a 49% stake. 
    LVB and Clix Capital did not immediately respond to emails
from Reuters requesting comment. 
    Both companies focus on providing loans to consumers and
small businesses. LVB, which has faced governance issues as well
as a high level of bad loans, a lack of sufficient capital to
manage risks and a negative return on assets for two consecutive
years, said it had received the approach from Clix in a letter
of intent dated June 12.
    Clix Capital is majority owned by Mumbai-based private
equity firm AION Capital Partners, which is a partnership
between New York-based Apollo Global Management and ICICI
Venture, a unit of India's ICICI Bank  ICBK.NS .
    LVB had planned to merge with Indiabulls Housing Finance Ltd
 INBF.NS  late last year but the plan fell through after it
failed to secure the approval of India's central bank.
    LVB's capital adequacy ratio stood at 3.46% at the end of
December, it said in its quarterly results release in February,
while the percentage of gross bad loans to total assets had
inched up to 23.27%.

 (Reporting by Nupur Anand; Editing by Susan Fenton)
 ((Nupur.Anand@thomsonreuters.com; +9122 68414388;))
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