LKP Finance Ltd receives RBI nod for share sale to Essel

LKP Finance Limited (Company), a RBI-registered NBFC with its shares listed on the Bombay Stock Exchange, has received Reserve Bank of India (RBI) approval for proposed sale of up to 62% equity shareholding to Dakshin Mercantile Private Limited, an Essel Group company and change in its management structure.

Earlier, Dakshin Mercantile Private Limited and the Company had entered into a definitive agreement on May 14, 2018, under which Dakshin Mercantile Private Limited agreed to acquire majority equity shareholding in the Company. After the RBI approval Dakshin Mercantile would now make an open offer to acquire a minimum 26% equity shares from public shareholders in accordance with SEBI and other applicable regulations.

The LKP Finance Limited Chairman, Mr. Mahendra Doshi, in the Company’s Board meeting held on August 30, 2018 updated the Board 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 Chainman further informed the Board that Essel Finance of the Essel Group has exposure to various financial services business such as mutual fund, foreign exchange, housing finance, NBFC etc. and now wish to consolidate its financial services under the newly acquired Company over a period of time and convert the same to CIC (Core Investment Company).