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Investment in Lakshmi Vilas Bank done through family wealth office: Rajesh Sharma, Capri Global

The 4.9% stake acquired at various points of time at different price points, from Rs 64 to Rs 14.

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Last Updated: Dec 05, 2019, 09.41 AM IST|Original: Dec 05, 2019, 09.41 AM IST
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We have not bought a single share in our listed entity. It is purely in the family wealth office. Says Rajesh Sharma, MD, Capri Global Capital. Excerpts from an interview with ETNOW.

What was the strategic rationale behind Capri Global buying the Lakshmi Vilas Bank stake?
This is a normal investment because we found the price was attractive at about Rs 13. We have bought it as our portfolio investment and we have about 5% stake. This investment was not done from the NBFC, it was done from the family office.

At what valuation was this 4.9% stake acquired?
This has been acquired at various points of time at different price points, right from about Rs 64 to about Rs 14.

This is a pure treasury transaction, but eventually could this also be an indication that Capri Global is looking at becoming a small finance bank or a small bank?
In order to be a small finance bank, one has to apply to RBI and that will not have anything to do with buying this stake because you have to apply for a fresh licence. We have not yet thought about that. We have to grow our portfolio yet and reshape its size and scale, before we approach RBI for a small finance bank licence.

Now that you have 4.9% holding in Lakshmi Vilas Bank, if you want to increase your holding more than 5%, you will have to approach the Reserve Bank of India, right?
We do not have any plan to go beyond 5%.

What you are telling us is that this is a pure treasury transaction which has happened in your personal balance sheet and it has got nothing to do with your listed entity?
Yes, we have not bought a single share in our listed entity. It is purely in the family wealth office.

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