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

Shares of Lakshmi Vilas Bank were locked in 5 per cent upper circuit at Rs 20.90 on the BSE on Wednesday after reports emerged saying that a US fund house is eyeing a big stake in the cash-strapped bank.

The private sector lender's stock has been frozen upper circuit for the fourth straight day. In the past week, the stock has rallied 41 per cent against 1 per cent rise in the S&P BSE Sensex.

The trading volumes on the counter nearly doubled with a combined 726,846 shares changing hands on the NSE and BSE till 11:21 am. There were pending buy orders for 1.27 million shares on both the exchanges, data shows.

According to a report by The Economic Times, US fund house Tilden Park Capital Management has sounded out the Reserve Bank of India (RBI) for buying a sizeable stake in Lakshmi Vilas Bank, an old private sector lender which is scouting for investors to shore up capital.

However, Lakshmi Vilas Bank said it has not received any proposal from any entity for any investment in the bank.

“Tilden Park Capital Management, a US based entity requested for certain regulatory clarifications pertaining to investment in Banks' shares and the Bank facilitated a meeting for them directly with the RBI,” Lakshmi Vilas Bank said on clarification with reference to the News item appearing in 'The Economic Times' on 11.02.2020.

Last week, Business Standard had reported that the capital-starved private sector lender may soon have a suitor willing to pump money into it. According to sources, top executives at the Chennai-based bank submitted a list of potential investors to the RBI, the report said.

Lakshmi Vilas Bank had then clarified that the bank was not aware of any such interest shown by companies viz., DBS Bank India or lndostar Capital Finance or Capri Global or any other private sector bank as mentioned in the articles.

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