Indian two thousand rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Lakshmi Vilas Bank Jumps On Plan To Sell Stake

Shares of Lakshmi Vilas Bank Ltd. rose nearly 6 percent in early trade on its plan to sell stake.

“The bank has called for bids and shortlisted a few investors,” Managing Director and Chief Executive Officer Parthasarathi Mukherjee told BloombergQuint in an interaction. “It’s difficult to put an exact timeline for completing the deal,” he said without naming the investors.

The Economic Times first reported on the planned stake sale quoting unnamed people. Five private equity investors, including Blackstone Group, Bain Capital and TPG Capital Management, have been shortlisted to buy a controlling stake in the Tamil Nadu-based lender, the report said.

The lender, Mukherjee told BloombergQuint, plans to use the capital to fund its growth.

The stock has tumbled 38 percent so far this year compared with 2.3 percent fall in the NSE Nifty Bank Index.

Watch the interview here