Equitas Holdings skyrockets ~9% as Board nods amalgamation with Equitas SFB

22 Mar 2022 , 09:30 AM

Equitas Holdings’ counter jumped 9.36% to trade at Rs118 against its previous close of Rs107.90.

The company informed through its regulatory filing that the Board of Directors of Equitas Holdings Ltd. has approved the scheme of amalgamation between Equitas Holdings and Equitas Small Finance Bank Ltd. The scheme contemplates the dissolution of Equitas SFB without winding up.

However, the scheme is subject to certain approvals from RBI, exchanges, NCLT, etc.

Equitas SFB has total assets worth ~Rs2,5261 crore, and a Net Worth of Rs3,583 crore as of December 2021.

The consideration for the scheme will be discharged on an arm’s length basis. The share exchange ratio for the Scheme is based on the valuation report issued by BDO Valuation Advisory LLP, Registered Valuers.

On the contrary, Equitas SFB’s scrip also rose to Rs55.65 against its previous closing of Rs52.90, up by 5.20%.

Equitas SFB operates as a small finance bank engaged in the retail banking business with a focus on microfinance, commercial vehicle finance, home finance, loan against-property finance, corporate finance, and providing financing solutions for individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels while providing a comprehensive banking and digital platform for all. Whereas, EHL is a non-deposit-taking, systemically important core investment company (CIC-ND-SI) registered with the Reserve Bank of India (RBI).