Money & Banking

Curious to know who bought Lakshmi Vilas Bank shares?

KS Badri Narayanan Chennai | Updated on November 18, 2020 Published on November 18, 2020

Today’s trading pattern in the beleaguered Lakshmi Vilas Bank shares has puzzled marketmen. Despite the fact that shareholders will not get anything post-merger, the stock has witnessed a trading volume of 29.45 lakh shares on the BSE ( against its two-week average of 1.71 lakh shares) and 25.45 lakh shares on the NSE.

In the opening few seconds itself, the stock plunged 20 per cent, the maximum permissible limit, to ₹12.45 on the NSE and ₹12.40 on the BSE.

Quick brains

According to bulk deal data on the BSE, Capri Global Holdings sold 20.51 lakh shares on the BSE at an average price of ₹12.40. Capri Global Holdings holds 61.40 lakh shares or 1.82 per cent stake in the company, according to latest shareholding data.

Besseggen Infotech appears to be a smart trader even in an adverse moment. The entity bought 23.42 lakh shares on the BSE at ₹12.40 and sold them on the NSE at ₹12.45, netting a neat profit of ₹1.17 lakh.

According to an analyst based in Chennai: “It’s really surprising that the LV Bank counter-witnessed such heavy volumes and curious to know who the buyers are, as their investment will turn zero value.”

A draft scheme proposed by the RBI clearly stated that the entire amount of the paid-up share capital and reserves and surplus, including the balances in the share/securities premium account of Lakshmi Vilas Bank, were written-off and its shares or debentures listed in any stock exchange shall stand delisted, he further said.

“It is even more surprising that the exchanges have not suspended the trading in the counter as the bank itself ceases to exist,” he added.

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Published on November 18, 2020
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