Equitas Holdings, Equitas SFB gain on board approval for merger plan

As per the scheme of amalgamation, each equity shareholder of Equitas Holdings will be allotted 231 equity shares for every 100 shares of Equitas SFB.

Shares of Equitas Holdings (EHL) and its subsidiary Equitas Small Finance Bank (ESFBL) gained up to 10 per cent on the BSE in Tuesday’s intra-day trade after their respective boards approved the merger of the two.

The scheme proposes the amalgamation of EHL into and with ESFBL and the dissolution without winding-up of the transferor company, according to a regulatory filing.

The Reserve Bank of India (RBI) guidelines also mandate that shares of SFBs should be listed on stock exchanges within a time period of three years from the date when their net worth reaches Rs 500 crore.