In a bid to secure regulatory approval for its proposed merger with Lakshmi Vilas Bank (LVB), Indiabulls founder has made additional concession offers.
In a letter to Reserve Bank of India (RBI), Indiabulls founder Sameer Gehlaut offered to relinquish all control in merged entity.
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It also offered to reduce the promoter group’s stake in the proposed bank to less than 10% after regulatory approval, The Economic Times has reported.
Earlier, Gehlaut committed that it will reduce his stake to less than 15% in the combined entity.
The merger, which has already received Competition Commission of India approval in June, is yet to receive green light from RBI.
Earlier, Indiabulls noted that it expected to receive the central bank approval by October this year. It expects that the combined bank will become operational by March next year.
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By GlobalDataIn May, Indiabulls announced certain changes to its proposed merger plan with The Lakshmi Vilas Bank.
As per the amended agreement, Indiabulls Housing Finance (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.
Under the new deal, Indiabulls Housing Finance shareholders will get 7.143 shares of Lakshmi Vilas Bank against every share they own.
