Shares of Equitas Holdings rose by 5 per cent on Tuesday's trading session following the announcement of the board and shareholders approvals for the scheme of amalgamation.
New Delhi (Anish Yande): Shares of Equitas Holdings rose by 5 per cent on Tuesday's trading session following the announcement of the board and shareholders approvals for the scheme of amalgamation. Equitas Holdings shares opened at Rs 131 per share from its previous close of Rs 124 per share on Monday rising to an intraday high of Rs 136.
Equitas Holdings board of directors approve amalgamation scheme:
The board of directors and shareholders of Equitas Holdings and Equitas Small Finance Bank have approved the amalgamation scheme. The transferor company Equitas Holdings, would receive a certain amount of equity shares of the transferee company, Equitas Small Finance Bank.
Equitas Small Finance Bank would get 226 equity shares for every 100 shares held by them in the holding company, Equitas Holdings.
Equitas Small Finance Bank receives approval from RBI:
Equitas Small Finance Bank had previously received approval from the RBI to apply for a scheme of amalgamation. The merger would be effective from November 1.
According to the licensing guidelines, Equitas SFB promoter can cease to be a promoter after the mandatory lock-in period of five years. The approval depends on the RBI’s regulatory and supervisory comfort and SEBI Regulations in this regard at that time.
For Equitas Small Finance Bank, the Initial Promoter Lock-in for the SFB would expire on September 4, 2021. The decision for merging the holding company with the small finance bank follows after the RBI allowed SFBs to apply for amalgamation on completion of five years from the date of commencement of business.
Equitas Holdings is an investment company and non-deposit taking. The company’s operations are limited to investing and providing loans to group companies.
Equitas Small Finance Bank operates as a small finance bank. The SFB operates in home finance, loan against property finance, and corporate finance segments. Equitas Small Finance Bank provides financing solutions for individuals and micro and small enterprises.
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