CARE Revises Lakshmi Vilas Bank Ratings, Stock falls

Lakshmi Vilas Bank was locked in a 10 percent lower circuit today after the CARE  revised the ratings of the Bank. The leading Rating agency CARE has revised the rating on Lakshmi Vilas Bank's unsecured redeemable non-convertible subordinated Lower Tier-II bonds to BB- (Under Credit Watch with Developing Implications, from BB-/Negative.

Reactively, the stock of Lakshmi Vilas Bank has slipped another 10 percent in share market trade Monday and has lost as much as 60 percent in the last few trading sessions.

Investors do not see much value in the stock of Lakshmi Vilas Bank given that if the merger with DBS Bank goes through they are unlikely to get any money. The draft merger clearly states that the shares would be delisted without any obligation on the bank to buy the shares, which would be eventually written off. This has prompted investors to sell the stock, and a further fall is also likely. While some shareholders have opposed the amalgamation and delisting, one needs to wait and watch what the RBI approves.

Markets open high, Top stock to watch

GST council panel strategy to curb fake invoices

CAIT urges DPIIT to penalise Amazon and Flipkart

 

Related News

Join NewsTrack Whatsapp group