Mortgage lender Indiabulls Housing Finance (IBH) has announced changes to its proposed merger plan with The Lakshmi Vilas Bank.
As per the amended agreement, IBH and its subsidiary Indiabulls Commercial Credit (ICCL) will be merged into Lakshmi Vilas Bank. Earlier, the companies announced that the bank will merge with and into Indiabulls Housing Finance.
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The new deal will see shareholders of Indiabulls Housing Finance get 7.143 shares of Lakshmi Vilas Bank for every share they own in Indiabulls Housing.
In a regulatory filing, the housing finance company said: “The scheme, among others, envisages amalgamation of Indiabulls Housing and Indiabulls Commercial Credit into and with Lakshmi Vilas Bank, on ongoing basis and dissolution of IBH and ICCL without being wound up.”
Last month, the board of The Lakshmi Vilas Bank had approved a scheme of amalgamation with IBH, which is claimed to be India’s second largest housing finance company and is regulated by the National Housing Bank.
IBH said the merger, which is subject to approval from the Reserve Bank of India (RBI), will create a diverse asset book and a low-cost funding in the form of public deposits and extended distribution franchise.
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By GlobalDataIBH claims to offer quick, convenient and competitively priced home loans in the affordable housing segment.
Lakshmi Vilas Bank, which was founded in 1926, obtained its banking license from RBI in June 1958. On 11 August 1958 it became a scheduled commercial bank signifying capability to operate as a full-fledged commercial bank.
