Equitas Holdings soars ~9% as board approves merger with Equitas SFB


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

The company advised through its regulatory filing that the board of directors of Equitas Holdings Ltd. approved the merger plan between Equitas Holdings and Equitas Small Finance Bank Ltd. The plan envisages the dissolution of Equitas SFB without liquidation.

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

Equitas SFB has total assets worth around Rs 2,5261 crore and a net worth of Rs 3,583 crore as of December 2021.

The Program Consideration will be paid on an arm’s length basis. The Share Exchange Ratio for the Scheme is based on the valuation report published by BDO Valuation Advisory LLP, Registered Valuers.

On the contrary, the Equitas SFB scrip also rose to Rs55.65 from its previous close of Rs52.90, up 5.20%.

Equitas SFB operates as a small corporate bank active in the retail banking sector with a focus on microfinance, commercial vehicle finance, real estate finance, home loan finance, corporate finance and providing financing solutions for individuals and micro and small enterprises (MSEs) underserved by formal financing channels while offering a comprehensive banking and digital platform for all. Whereas, EHL is a Non-Depository Systemically Important Core Investment Company (CIC-ND-SI) registered with the Reserve Bank of India (RBI).


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