The board of directors of Lakshmi Vilas Bank (LVB) on Monday fixed `112 per equity share as the actual price at which the shares will be allotted to Indiabulls Housing Finance (IBH) on a preferential basis.
The LVB board in its April 15 meeting had decided to allot 1.68 crore equity shares to IBH, in the interim, in a bid to raise funds.
The board had approved the merger with IBH in which the shareholders of the bank will get 14 shares of IBH for every 100 shares they hold. However, the bank, after the last board meeting on April 15, had said that this does not presuppose any capital augmentation on account of the proposed merger, which would only conclude after receipt of all regulatory approvals. The Monday’s board meeting has also decided to call for an extra ordinary general body meeting on May 20 to get the shareholders’ nod for preferential share allotment.