LVB receives bid from Clix group

Struggling private sector lender Lakshmi Vilas Bank Ltd on Thursday said that it has received an indicative non-binding offer from Clix group.

The bank, which recently saw its public shareholders reject the reappointment of several directors, including its managing director and chief executive officer, is desperately looking for capital and has been in talks with the Clix group for a merger for some time.

Shares of the lender zoomed 8.43% to close at ₹19.30 on BSE, after the announcement. During the day, it jumped 16% to ₹20.65.

“Further to the process of considering and evaluating the proposed amalgamation with Clix Capital Services Private Limited, Clix Finance India Private Limited, and Clix Housing

Finance Private Limited, collectively the Clix group, we are glad to inform that the bank has received an indicative non-binding offer from Clix group. The bank will continue to share information on material developments as and when they materialise,” the lender said in a filing to the exchanges on Thursday.

“Clix has strong investors and will look at bringing in additional capital into the bank,” said a person aware of the matter.

Last month, the lender’s CEO, S. Sundar, and six other directors were voted out by shareholders. Post the removal, the Reserve Bank of India (RBI) appointed a three-member committee of directors (CoD) comprising independent directors Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra to run the bank’s operations.