Lakshmi Vilas Bank at 5% UC

Lakshmi Vilas Bank, which had closed yesterday at Rs.13.89, opened at Rs.14.10 and went on to hit the 5% UC of the day at Rs.14.58. The stock has been intermittently hitting the UC pretty frequently over the past few days.

There is unconfirmed news that the Bank, which desperately needs some capital infusion and has been trying to get someone to buy a stake, might have found that ‘someone.’

News reports suggest that AION Capital backed Clix Capital is looking at buying over 51% stake in the Bank and might be sending a formal letter of intent next week.

This stake sale, if it happens, will bring in Rs.1200-1500 crore to the bank and some existing investors are also planning to pump in more money. The total capital infusion could be to the tune of Rs.3000 crore.