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This article is more than 2 year old.

Equitas Holdings shares plunge after RBI denies extension of listing deadline

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Shares of Equitas Holdings plunged about 12 percent intraday on Monday after the Reserve Bank of India declined the company's request to extend its listing deadline for small finance bank. The company approached the regulator with a reverse merger proposal, to which it denied consent. The RBI said that it had clearly mentioned that restrictions could be imposed if the bank fails to make satisfactory progress towards listing of its shares. 

Equitas Holdings shares plunge after RBI denies extension of listing deadline
The share price of Equitas Holdings plunged about 12 percent on Monday after the Reserve Bank of India declined the company's request to extend its listing deadline for unit Equitas Small Finance Bank. The Equitas SFB was to be listed on September 4.
At 09:30 AM, Equitas' shares were trading lower by 7.80 percent to Rs 107 per share on the NSE. Intraday, Equitas Holdings shares plunged 11.97 percent to its day's low of Rs 102.15.
Equitas Holdings has proposed a new scheme of arrangement to list its small financing bank arm ESFB after being denied an extension to the listing deadline by the RBI as well as approval to reverse merger proposal by Sebi.
Under the new scheme, EHL has proposed to capitalise free reserves of Equitas Small Finance Bank (ESFB) and issue shares of the subsidiary to its shareholders without cash consideration.
Earlier, the RBI had turned down ESFB's request for extension of timeline for listing of shares of the banking entity saying it "cannot be acceded to".
Besides, the RBI has put curbs with immediate effect on ESFB to open new branches till further advice.
EHL is the promoter and holding company of Equitas Small Finance Bank (ESFB) and is a listed company. Under the RBI's regulatory requirements, ESFB was to be listed on capital markets on or before September 4, 2019, and have a net worth of Rs 500 crore.
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