Last updated: 26 Nov, 2020 | 10:51 am
Shares of Lakshmi Vilas Bank (LVB) were suspended from November 26, 2020, from the NSE, as the bank is set to merge with DBS Bank on November 27 and the stock will be delisted from tomorrow.
INDmoney had advised investors to exit their holdings in the beleaguered bank last month itself, after Brickwork Ratings India had downgraded the ratings on Lakshmi Vilas Bank. The bank had gone into a major crisis after the shareholders rejected the CEOs and some board members. We had reiterated that investors exit their holdings in the bank last week, after RBI put the bank under the moratorium.(Click to read)
Indiabulls Housing Finance holds a 4.99% equity stake in the bank, while Srei Infrastructure Finance holds 3.34% and Capri Group holds 3.82%. We had advised investors to exit their debt holdings in Indiabulls Housing Finance on Nov 24th after Moody’s raised concerns that the Asset Quality of this NBFC will deteriorate going forward. (Read more)
Last week, SREI Infrastructure Finance Ltd. (SIFL) announced that the company and its wholly-owned subsidiary SREI Equipment Finance Ltd.(SEFL) have been undergoing a special audit, conducted by an auditor appointed by Reserve Bank of India (Read more). This is generally undertaken if the credit quality of the lending company has significantly worsened. We advise you to exit your holdings to this group as well.
Please find your exposure to shares of Lakshmi Vilas Bank, Indiabulls Housing Finance and SREI Infrastructure through equities and mutual funds. Also find your exposure to bonds of Indiabulls Housing Finance through debt mutual funds.