Shares of Lakshmi Vilas Bank were locked in the upper circuit, up 5 percent at Rs 73.90 on Friday after Embassy Group bought around 12 percent stake in Indiabulls Real Estate.

Share Market Live

NSE

Earlier this May, Indiabulls Group revealed its decision to exit the real estate sector and shift its focus to core financial services after announcing a merger with Lakshmi Vilas Bank.

Indiabulls Group wants to focus on core financial services business, Ajit Mittal, executive director of the group, told CNBC-TV18.

“Our Group has predominantly been a financial services group. Real estate was a latter entry. So, we want to focus on financial services-part. For us, evolution into banking is the natural frontier and it’s all in the public domain. We have kick-started the process of doing a voluntary amalgamation with Lakshmi Vilas Bank (LVB); the idea is to create a world-class bank,” Mittal added.

Indiabulls Group said it has started the process of volunteer amalgamation with Lakshmi Vilas Bank and the merger will be completed in next 9-12 months. The merger will be subject to approval from RBI, National Company Law Tribunal and the Competition Commission of India, among others.

The banking regulator is yet to grant its approval to Indiabulls Housing Finance's proposed merger with Lakshmi Vilas Bank.

US-based private equity giant Blackstone and its partner Embassy Group will acquire a 39.5 percent stake of Indiabulls Group chairman Sameer Gehlaut in Indiabulls Real Estate Ltd (IBREL).

The shares are locked in 5 percent upper circuit. 11,52,458 shares changed hands, as of 12:20 PM. Meanwhile, the Nifty50 was trading 9.50 points up at 11,853.25 and Sensex was higher by 42.37 points at 39,580.50. Nifty Bank is trading 0.67 percent higher at 31,064.30. Meanwhile, Indiabulls Real Estate gained nearly 15 percent post the stake sale announcement,

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

First Published:Jun 7, 2019 1:22 PM IST