LKP Finance on Thursday said it has received RBI approval for the proposed sale of up to 62 per cent of its equity shareholding to Dakshin Mercantile Pvt Ltd, an Essel Group company, and change in its management structure.
LKP Finance is an RBI-registered NBFC with its shares listed on the BSE.
Dakshin Mercantile and LKP Finance had entered into a definitive agreement on May 14, 2018, under which the former agreed to acquire majority equity shareholding in the latter.
“After the RBI approval, Dakshin Mercantile would now make an open offer to acquire a minimum 26 per cent equity shares from public shareholders in accordance with SEBI and other applicable regulations,” LKP Finance said in a stock exchange notification.
LKP Finance, in a statement, said its Chairman Mahendra Doshi updated the board at its meeting held on August 30 on the future plans of the company — alignment with Essel Finance, possibility of funds infusion into Essel Finance companies post-alignment, change of name and registered office post-completion of the acquisition.
“The Chairman further informed the board that Essel Finance of the Essel Group has exposure to various financial services businesses such as mutual funds, foreign exchange, housing finance, NBFC, etc, and now wishes to consolidate its financial services under the newly-acquired company over a period of time and convert the same to CIC (core investment company),” said the company statement.
The board of LKP Finance accorded in-principle approval for appointing Navyata Goenka as the director of the company, subject to approval of the RBI.