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The National Company Law Tribunal has sanctioned the scheme of amalgamation of Equitas Holdings Limited and Equitas Small Finance Bank, the small finance lender told exchanges on Tuesday.
The appointed date for the amalgamation is January 1, 2023 and the scheme shall be effective upon the filing of the NCLT’s order with registrar of companies, Chennai, the bank said.
“Post the reverse merger, 231 shares of Equitas Small Finance Bank are to be issued to the Shareholders holding 100 shares in Equitas Holdings Limited (all Rs 10 fully paid-up),” it said.
In July 2021, Equitas SFB had received the Reserve Bank of India’s approval to apply for amalgamation of the promoter into itself. The intent of the amalgamation is to comply with the RBI norms on small finance banks, mandating the promoter to reduce the stake in the subsidiary to 40 per cent within five years of commencement of operations by the SFB.
Equitas Holdings is a non-deposit taking, core investment company. Its operations and activities are limited to investing in and providing loans to group companies.
Equitas SFB operates as a small finance bank engaged in retail banking business with focus on micro finance, commercial vehicle finance, home finance, loan against-property finance and corporate finance. It also provides financing solutions for individuals and micro and small enterprises.
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