Ujjivan, Equitas promoter holdings to fall to zero post mergers with SFBs

Predictably, share prices of Ujjivan Financial Services, and Equitas Holdings jumped 20 per cent each after the two entities received the nod to reverse merge with their small finance bank entities

The reverse merger of Ujjivan Small Finance Bank (SFB) and Equitas SFB with their respective holding companies will bring down promoter shareholding to zero, thereby helping the entities comply with the Reserve Bank of India (RBI) guidelines and reap rich rewards for the shareholders of the holding entities.

Predictably, the share prices of Ujjivan Financial Services, and Equitas Holdings jumped 20 per cent each after the two entities received the nod to reverse merge with their small finance bank entities. When the central bank issued guidelines on SFBs, it had said the holding company structure could be allowed to merge