Equitas Holdings — the promoter of Equitas Small Finance Bank (SFB) — on Saturday said it was considering a new scheme of arrangement and has sought the Reserve Bank of India’s (RBI’s) approval. This comes a day after the RBI refused to extend the SFB’s listing deadline.
“In case the scheme of arrangement does not get approved, Equitas SFB would be taking immediate steps for an IPO (initial public offering) and get its shares listed as soon as possible,” said Equitas Holdings. The company said it had earlier approached the RBI with a reverse merger proposal — as Equitas Holdings is the listed holding company and the SFB is its wholly owned subsidiary — which was rejected by the regulator.
According to the new plan, the SFB would capitalise its free reserves and issue shares to the shareholders of the holding company, without cash consideration, in proportion to their stake in Equitas Holdings.
This scheme of arrangement is subject to approval from the Securities and Exchange Board of India (Sebi), the RBI, the National Company Law Tribunal (NCLT), the shareholders and the creditors.
Source: Business-Standard