NEW DELHI: Shares of Lakshmi Vilas Bank (LVB) jumped nearly 5 per cent in Wednesday’s trade after entities belonging to Capri Group bought 4.9 per cent stake in the private lender.
The stock purchases made Capri one of the largest non-promoter shareholders in LVB along with Indiabulls, which owned a tad below 5 per cent at the end of September quarter.
Following the development, the scrip jumped 4.76 per cent to hit a high of Rs 20.90 on BSE.
The shares were bought by Capri group in a series of transactions over the past five to six months. Till end September, Capri Global Holdings Private Limited held 1.87 per cent in LVB. Sources told the ET that in the past two months another Capri company has also bought shares in the open market.
It’s learnt that Capri had reached out to the LVB board earlier this year — when it was holding little or no shares in the bank — to buy into the bank by subscribing to a preferential offering of equity. The board did not consider the offer because, among other things, it had initiated negotiations with the Indiabulls group.
A holding of 5 per cent or more in a private bank requires the approval of RBI.
It is unclear how the proposal would have gone down with the banking regulator as Sharma’s company Money Matters had come under the glare of the Central Bureau of Investigation (CBI) almost a decade ago amid allegations that the company had bribed or attempted to bribe bankers to obtain loans for other corporates.
Source: Economic Times