DSP Investment Managers Private Ltd (DSPIM) has acquired a 10% interest in Equitas Small Finance Bank for an undisclosed amount, following approval by the Reserve Bank of India.
The Bank received notice from RBI on November 16, 2022 that it has approved DSP Investment Managers to acquire up to 9.99 percent of the Bank’s paid-up equity through the DSP Mutual Fund (DSPMF) programs the bank announced on Thursday in an application for approval. Shares in Equitas Small Finance Bank rose 5.83 percent to 53.55 rupees on the BSE on Thursday.
The proposed acquisition of shares by DSPIM would be a consequence of Equitas Holdings Limited’s merger plan when the bank becomes effective. RBI’s approval is subject to compliance with relevant provisions of various regulations relating to RBI and Sebi, it said.
Under RBI standards, any person or entity intending to make an acquisition of more than 5 percent of equity in private banks must obtain prior approval from the central bank. In May of this year, the merger of Equitas Holdings and Equitas Small Finance Bank (SFB) was approved by their respective boards. The merger aims to satisfy RBI’s license terms to reduce the holding company’s interest to 40 percent within five years from the date of bank inception, which was completed on September 4, 2021. The promoter holds 74.50 Percent stake in the bank.
The bank reported a net profit of Rs.116.42 crore for the quarter ended September 2022.
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