Lakshmi Vilas Bank surges 41% in a week on report US fund house eyes stake

Shares of Lakshmi Vilas Bank were locked in 5 for every cent upper circuit at

Shares of Lakshmi Vilas Bank were locked in 5 for every cent upper circuit at Rs twenty.90 on the BSE on Wednesday immediately after stories emerged stating that a US fund home is eyeing a huge stake in the cash-strapped bank.

The non-public sector lender’s stock has been frozen upper circuit for the fourth straight day. In the past week, the stock has rallied 41 for every cent in opposition to 1 for every cent rise in the S&P BSE Sensex.

The buying and selling volumes on the counter just about doubled with a combined 726,846 shares transforming fingers on the NSE and BSE until eleven:21 am. There were pending obtain orders for 1.27 million shares on each the exchanges, details displays.

In accordance to a report by The Economic Times, US fund home Tilden Park Funds Management has sounded out the Reserve Bank of India (RBI) for buying a sizeable stake in Lakshmi Vilas Bank, an aged non-public sector financial institution which is scouting for traders to shore up funds.

However, Lakshmi Vilas Bank mentioned it has not gained any proposal from any entity for any financial investment in the bank.

“Tilden Park Funds Management, a US based entity requested for particular regulatory clarifications pertaining to financial investment in Banks’ shares and the Bank facilitated a meeting for them instantly with the RBI,” Lakshmi Vilas Bank mentioned on clarification with reference to the News item showing up in ‘The Economic Times‘ on eleven.02.2020.

Past week, Small business Regular had claimed that the funds-starved non-public sector financial institution might soon have a suitor eager to pump revenue into it. In accordance to sources, best executives at the Chennai-based bank submitted a listing of possible traders to the RBI, the report mentioned.

Lakshmi Vilas Bank had then clarified that the bank was not knowledgeable of any such fascination revealed by corporations viz., DBS Bank India or lndostar Funds Finance or Capri Global or any other non-public sector bank as mentioned in the posts.