LVB to raise Rs 188.16 crore via preferential shares sale

Lakshmi Vilas Bank (LVB) Monday said it proposes to raise Rs 188.16 crore by allotting 4.99 per cent of its shares at Rs 112 apiece on a preferential basis to Indiabulls Housing Finance Ltd. Earlier this month, the private sector lender had announced its merger with Indiabulls Housing Finance Ltd (IBHL) in a share-swap deal with an intent to create a combined entity with larger capital base and wider geographical reach. The board of LVB has approved the merger with IBHL in which shareholders of the bank will get 14 shares of IBHL for every 100 shares they hold. The bank proposes to issue 1.68 crore shares on a preferential basis to IBHL.