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Home / Business / DSP Investment Managers Pvt Ltd to buy 10 per cent of Equitas Small Bank

DSP Investment Managers Pvt Ltd to buy 10 per cent of Equitas Small Bank

ESFB says this proposed acquisition of shares will be consequent to scheme of amalgamation of Equitas Holdings with niche lender
Shares of ESFB on Thursday closed firm in an otherwiseweak market. The counterrose 5.83 per cent, or Rs 2.95, tosettle at Rs 53.55 on the BSE.
Shares of ESFB on Thursday closed firm in an otherwiseweak market. The counterrose 5.83 per cent, or Rs 2.95, tosettle at Rs 53.55 on the BSE.
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Our Special Correspondent   |   Mumbai   |   Published 18.11.22, 02:25 AM

DSP InvestmentManagers Pvt Ltd (DSPIM)is acquiring nearly a 10 percent stake in Equitas SmallFinance Bank (ESFB) for an undisclosed amount, following approval from the Reserve Bank of India (RBI).

The small finance bank on Thursday said the RBI onWednesday has informed the bank that it has approved the acquisition of 9.99 per cent of its paid-up equity capital by the schemes of DSP MutualFund (DSPMF).

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ESFB said this proposed acquisition of shares would be consequent to the scheme of amalgamation of EquitasHoldings (holding company)with the niche lender. An investor will have to take prior approval of the RBI for purchasing more than 5 per cent in a private sector bank. Shares of ESFB on Thursday closed firm in an otherwise weak market.

The counter rose 5.83 per cent, or Rs 2.95, to settle at Rs 53.55 on the BSE.

In May this year, the respective boards of EquitasHoldings and Equitas SmallFinance Bank had approved a merger proposal. The merger is aimed to meet the RBI’slicensing conditions to bring down the shareholding of the holding company to 40 percent within a period of five years from the date of commencement of business of the bank, which completed by September 4, 2021.

Equitas Holdings has a 74.50 per cent stake in its small finance bank subsidiary. Its shares ended 6.47 per cent higher at Rs 106.20 on the BSE.



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