Equitas Holdings likely to take bonus route to list Small Finance Bank

With reverse merger not being an option as per Reserve Bank of India (RBI) norms, this may offer the best exit for shareholders of Equity Holdings

With just a month left for Equitas Holdings to list its banking arm Equitas Small Finance Bank (ESFB), sources say the company is working on ways to ensure that its shareholders do not suffer huge dilution in the listing process of ESFB. 

To do so, it is learnt that ESFB may issue bonus shares to its 100 per cent holding company — Equitas Holdings — in the ratio of 1:1. According to the current structure, ESFB would issue bonus shares to Equitas Holdings and the holding company will, in turn, transfer the rights on bonus shares to its shareholders. 

By this, the