INSUBCONTINENT EXCLUSIVE:
Mumbai: Equitas Holdings, is planning to offer 60% ownership of Equitas Small Finance Bank to its existing shareholders so that there would
be no dilution in shareholders value.
"That's the intent," said PN Vasudevan, managing director of the bank
"We have created a committee to work out a Scheme of Arrangement and Reconstruction," he said.
The bank plans to list its shares by
September 2019 as directed by Reserve Bank of India, without going for an initial public offer.
The holding company will ultimately be
reverse merged with the bank, the company said in a stock exchange filing.
"Equitas Holdings Ltd plans to dilute up to 60% of its holdings
in the bank in favour of its existing shareholders and to remain a non-operating core investment company till such time that it gets
regulatory approvals to merge with the bank," the company said after its board meeting Friday.
The committee is mandated to evaluate various
options including the Scheme of Arrangement and Reconstruction under relevant provisions of Companies Act, 2013 subject to compliance with
Income Tax Act and other statutory and regulatory requirements.
RBI has recently directed Equitas and Ujjivan to list their respective
banks' shares within three years of commencement of banking.
Equitas Holdings has two wholly owned subsidiaries under it -- the bank and
Equitas Technologies Private Ltd, which is engaged in the business of freight aggregation.
Meanwhile, Equitas Small Finance Bank said its
net profit for the September quarter grew neary five-fold to Rs 49.7 crore from Rs 10.9 crore in the year ago period.
