Equitas board approves merger of holding company with bank

Both EHL and Equitas Small Finance Bank are listed connected the banal exchanges and EHL holds a 81.98 % involvement successful the bank.

The committee of directors of Equitas Small Finance Bank (ESFBL) has approved a strategy of amalgamation of Equitas Holdings (EHL ) with ESFBL. The strategy is awaiting approvals from the Reserve Bank of India and Sebi. EHL is the holding institution of the ESFBL.

Upon the scheme’s coming into effect, each of the equity shareholders of EHL would beryllium allotted 226 equity shares of Rs 10 each, credited arsenic afloat paid up of ESFBL, successful respect of each 100 equity shares.

ESFBL had, successful July 10, clarified that the Reserve Bank of India (RBI) had permitted the Chennai-headquartered slope to use to the banking regulator for the support of its amalgamation scheme, which would facilitate the merger of promoter entity EHL with the bank.

In accordance with the RBI tiny concern slope licensing guidelines and the RBI clarification issued connected January 1, 2015, a promoter of tiny concern slope tin exit oregon cease to beryllium a promoter aft the mandatory archetypal lock-in play of 5 years, depending connected the RBI’s regulatory and supervisory comfortableness and Sebi regulations successful this respect astatine that time.

In the lawsuit of ESFB, the said archetypal promoter lock-in expires connected September 4, 2021, and the slope had requested RBI if a strategy of amalgamation of the promoter and holding institution (EHL) with the bank, resulting successful the exit of the promoter, could beryllium submitted to the RBI for approval, anterior to the expiry of the 5 years.

Both EHL and Equitas Small Finance Bank are listed connected the banal exchanges and EHL holds a 81.98 % involvement successful the bank.