Equitas Holdings Limited (EHL), the Promoter of the Equitas Small Finance Bank Limited (ESFB), is a Listed Company and it holds 100% shares of ESFB.
Licensing conditions for Small Finance Banks require SFBs, which have a capital base of over Rs 500 crore to list within three years from commencement of operations. ESFB was consequently to list on or before September 4, 2019.
Since EHL, the holding company is listed and ESFB is a wholly owned subsidiary, EHL approached the Regulator with a reverse merger proposal.
As the Regulator did not consent to this proposal, the Boards of EHL and ESFB had approved a Scheme of Arrangement wherein, ESFB would capitalize its free reserves and issue shares of ESFB to the shareholders of EHL without cash consideration, in proportion to their holding in EHL. This Scheme of Arrangement was subject to approval from SEBI, RBI, NCLT, Shareholders and creditors.
ESFB had applied to SEBI for their approval of this Scheme. Post such an approval, application to NCLT is required to be made for the remaining approvals.
In case the Scheme of Arrangement does not get approved, ESFB would be taking immediate steps for an IPO and get its shares listed as soon as possible.
Shares of Equitas Holdings Ltd was last trading in BSE at Rs.116 as compared to the previous close of Rs. 114.35. The total number of shares traded during the day was 399252 in over 2424 trades.
The stock hit an intraday high of Rs. 117.45 and intraday low of 113.85. The net turnover during the day was Rs. 46176058.