RBI Permits SFBs To Merge With Holding Companies - Unlock Significant Value For Equitas: Motilal Oswal

RBI Permits SFBs To Merge With Holding Companies - Unlock Significant Value For Equitas: Motilal Oswal

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Motilal Oswal Report

The Reserve Bank of India has allowed small finance banks and respective holding companies to apply for the amalgamation scheme.

Both Equitas Holdings Ltd. and Ujjivan Financial Services Ltd. are going to complete five years of business operations.

Though the SFBS are required to dilute promoter shareholding to less than 40% within five years, but this scheme of amalgamation will give an exit route to the promoters and collapse the holding company structure.

Equitas and Ujjivan holding company currently owns ~82%/~83% stake in underlying SFB respectively.

Both the entities are completing five years on September 04, 2021 and January 31, 2022 respectively.

Click on the attachment to read the full report:

Motilal Oswal Equitas Holding Company Update.pdf
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