Equitas Small Finance Bank (ESFBL) on Friday said it has received a no-objection certificate from the Reserve Bank of India (RBI) for the proposal for voluntary amalgamation of Equitas Holding (EHL) with ESFBL, subject to fulfilment of certain conditions.
Accordingly, EHL will have to divest its shareholding in its subsidiary Equitas Technologies (P) prior to the scheme taking effect. ESFBL will seek the RBI’s approval for bringing Equitas Development Initiatives Trust and Equitas Healthcare Foundation under its ambit.
Any investor who will be acquiring or holding 5% or more shareholding in ESFBL upon the scheme taking effect will have to seek prior approval of the RBI within one month from the date of the letter. Till they are found by the RBI to be fit and proper, their voting rights in ESFBL will be restricted to below 5% of total voting rights of shareholders of ESFBL.
The scheme is to be approved by requisite majority of shareholders and creditors of EHL and ESFBL according to the applicable procedure. ESFBL is to obtain the approval of the NCLT for the scheme of amalgamation and submit the same to RBI, ESFBL said in a regulatory filing with the stock exchanges.