On Friday, Lakshmi Vilas Bank (LVB) had hit a 5% UC at Rs.77.15 and today too, within seconds of opening, it briefly breached the 5% UC at Rs.81. The stock figures among the top five gainers on the BSE currently.

The Board of LVB on Friday has approved a new scheme of amalgamation with Indiabulls Housing Finance Ltd (IBHFL) and its subsidiary Indiabulls Commercial Credit Ltd (ICCL) to merge into the bank. This is a change from the earlier scheme where LVB was to be merged with IBHFL.

The Scheme, amongst others, envisages amalgamation of the IBH and ICCL into and with the LVB, on ongoing basis and dissolution of IBH and ICCL without being wound up. The existing issued capital of both IBH and LBV and the share exchange ratio, the shareholders of the IBH will hold approximately 90.5% of the post-merger enhanced equity capital of the merged entity and the shareholders of LVB will hold approximately 9.5% of the post-merger enhanced equity capital of the merged entity.

The share exchange ratio will remain the same, with the shareholders of IBHFL and ICCL will receive 7.143 equity shares of face value of Rs 10 each of LVB held, which has a face value of Rs.2.

The Bank has clarified that it will issue equity shares to both companies on the record date and no separate consideration will be paid for the transfer of the subsidiary.