Five Investors Have Been Shortlisted By Lakshmi Vilas Bank To Sell The Stake
Recently 5 new financial investors have been shortlisted to buy a stake in Lakshmi Vilas Bank. These investors include Blackstone Group, brain Capital Management. Two other contenders are Baring Private Equity Asia and Home-grown Gajja Capital. The advisor JP Morgan have shortlisted a few of bidders, said by the P Mukherjee the managing director of the bank. It is informed that " The process continues now”. Furthermore, it is also said that “The extent of investment and the timing thereof is yet to be worked out”.The range of the non-binding offers is in between Rs. 140 to Rs. 160 per share. It is also said by the sources that these shares valuing the lending in the private sector between Rs. 3592 and 4106 CroreIt is also known that the bidders have started by the 2nd week of November. There is a process is running by the J.P Morgan & Chase to find a buyer. However the bidders- Bain Capital, TPG Capital Management, Blackstone Group, Baring & Gajja Capital are still silent about this matter. One interesting thing to know that these five bidders are chosen among 15 interested bidders.These interested bidders were- Carlyle Group, Aion Capital, a joint venture between Apollo Global management and ICICI Venture, True North and General Atlantic, besides strategic players such as DBS. Furthermore, the successful investor will have to make an open opportunity to the public shareholders of the bank. Mr. JP Morgan was specially hired to find the interested buyers who have an interest in controlling the lenders. The Lakshmi Vilas Bank has raised Rs 800 crore through a rights issue of shares in November 2018It is expected that the deal will close in November and it will be on the lines of Fairfax Financial Holding’s investment in Catholic Cyrian Bank.