DSP Investment Managers Private Ltd (DSPIM) will buy a nearly 10% stake in Equitas Small Finance Bank for an undisclosed amount, following approval from the Reserve Bank of India.
The bank has received an intimation from the RBI on November 16, 2022, that it has granted approval to DSP Investment Managers Private Ltd (DSPIM) to acquire up to 9.99% of the paid-up equity capital of the bank through the schemes of DSP Mutual Fund (DSPMF), Equitas SFB said in a regulatory filing on Thursday. Shares of Equitas SFB surged as much as 8% intra-day before settling nearly 6% higher at close at Rs 53.55 apiece on BSE.
As of September 30, 2022, Equitas Holdings had a 74.5% stake in its SFB subsidiary. Equitas Holdings scrip rose 4% to Rs 105.40.
The proposed acquisition of shares by DSPIM would be consequent to the scheme of amalgamation of Equitas Holdings (holding company) with the bank, said Equitas SFB.
In May this year, Equitas Holdings and Equitas Small Finance Bank (SFB) were approved by their respective boards for their merger.
The merger is aimed to meet the RBI’s licensing conditions to bring down the shareholding of the holding company to 40% within a period of five years from the date of commencement of business of the bank, which completed by September 4, 2021.
With inputs from agencies