
Equitas Holdings Ltd, which is the promoter of Equitas Small Finance Bank Ltd, is looking to merge the company with the bank, and has initiated steps to finalise the scheme of amalgamation after getting RBI's approval for the same.
According to the gudelines of the Reserve Bank of India (RBI), "a promoter of small finance bank (SFB) can exit or to cease to be a promoter after the mandatory initial lock-in period of five years ("Initial Promoter Lock-in") depending on the RBI's regulatory and supervisory comfort and SEBI Regulations in this regard at that time", Equitas Holdings said in an exchange filing.
For Equitas Small Finance Bank Limited, the initial promoter lock-in for the company expires on September 4, 2021.
"Hence, the bank had requested RBI if a Scheme of Amalgamation of the company with the bank, resulting in exit of the promoter, can be submitted to RBI for approval, prior to the expiry of the said five years, to take effect after the initial promoter lock-in expires," it said.
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The central bank permitted Equitas Small Finance Bank to apply for approval for scheme of amalgamation, the filing said, adding that RBI also conveyed that any "no objection", if and when given on the scheme of amalgamation, would be without prejudice to the powers of RBI to initiate action, if any, for violation of any licensing guidelines or any terms and conditions of license, or any other applicable instruction.
"Accordingly, we would be initiating steps to finalise the Scheme of Amalgamation, submit to the boards of the company and the bank for approval, and take further action thereafter in accordance with applicable regulations and guidelines," the company said.
Shares of Equitas Holdings on Friday closed 2.44 per cent higher at Rs 115.35 on the BSE, while those of Equitas Small Finance Bank closed 1.72 higher at Rs 65.10.
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