Equitas Micro Finance gets nod for Scheme of Amalgamation with two subsidiaries

Company was granted Small Finance Licence and regulation calls for the merger

Equitas Micro Finance Ltd has informed BSE regarding the Board approved for the proposed Scheme of Amalgamation of the Company and Equitas Housing Finance Limited (EHFL) with Equitas Finance Limited subject to approval of RBI and High Court of Madras.

Equitas Finance Pvt Ltd has informed BSE regarding Intimation about the Board approval for the proposed Scheme of Amalgamation of Equitas Micro Finance Limited and Equitas Housing Finance Limited with the Company subject to approval of RBI and High Court of Madras.

It may be noted, the holding company Equitas Holdings Ltd has been graned an in-principle approval by RBI for setting up a Small Finance Bank. In terms of the said approval and pursuant to RBI guidelines on Licensing of SFB, the subsidiaries of Equitas Holdings, viza, the company EHFL and EFL have be merged into a single entity to become the proposed SFB through a Court approved scheme of arrangement under.

The company's Board of Directors, the holding company and the other two subsidiaries (EHFL and EFL) have approved the Scheme of Amalgamation for merger of the  company and EHFL with EFL in their separate Board meetings held on November 26, 2015. The scheme is subject to the approval of the RBI.