Equitas Holdings stock surges ~5% after board approves divestment in subsidiary, Equitas Technologies

10 Jan 2022 , 12:15 PM

Equitas Holdings Limited Board of Directors in its meeting held on January 07, 2022, approved the sale of its entire shareholding in the company’s Subsidiary, Equitas Technologies Private Limited (ETPL).

The company has appointed SBI Capital Markets Ltd (SBICAPS) to advise on the strategic buyout and/or stake sale of ETPL. SBICAPS is in the process of undertaking a public auction process to identify potential buyer(s) and complete the transaction.

At around 12.20 pm, Equitas Holdings Ltd was trading at Rs119.50 per piece up by Rs5.25 or 4.6% from its previous closing of Rs114.25 per piece on the BSE.

The scrip opened at Rs117.45 and has touched a high and low of Rs120.75 and Rs115.60 respectively.

In order to comply with the RBI’s licensing conditions applicable to the company, being the Promoter of Equitas Small Finance Bank, the Boards of the Company and the Bank in their respective Meetings held on July 26, 2021 had approved a Scheme of Amalgamation (Scheme).

As per the Scheme, all the assets held by the Company, including its investments in ETPL has to be transferred to and vested in the Bank.

Since ETPL is not engaged in financial services, the Company is required to fully divest its investment in ETPL.