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Equitas Holdings to completely sell stake in subsidiary ETPL ahead of merger with Equitas SFB

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equitas Holdings Limited Will divest its entire stake in Assistive Technologies Private Limited (ETPL) as part of the merger requirement with Equitas small finance bank (ESFB). As part of the licensing conditions of RBI, being the promoter of ESFB, the Board of Equitas Holdings and ESFB The plan for amalgamation between them was approved in July 2021.

As per the scheme, all assets by Equitas Holdings including its investment in ETPL are to be transferred and vested in ESFB.

“Since ETPL does not engage in financial services, the company is required to fully divest its investment in ETPL. Accordingly, the Board of Directors, in its meeting held on January 7, 2022, approved the sale of its entire shareholding in ETPL, a subsidiary of the Company. Equitas Holdings said in a regulatory filing on Saturday.

Equitas Holdings Limited (EHL) has two subsidiaries – ESFB and ETPL. The latter is engaged in the business of freight.

Equitas Holdings said it has appointed SBI Capital Markets (SBICAPS) to advise on the strategic purchase and/or stake sale of ETPL.

SBICAPS is in the process of initiating a public auction process to identify the potential buyer(s) and complete the transaction.

In July last year, the RBI had approved the merger between the promoter and the subsidiary.

As per RBI norms on small finance banks, it is mandatory for the promoter of a small finance bank to reduce the stake in the subsidiary to 40 per cent within five years of the commencement of operations of the small finance bank.

ESFB started operations from September 2016.

As per BSE data, as on September 30, 2021, EHL held 81.55 per cent stake in Equitas Small Finance Bank (ESFB).

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Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

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