India's Equitas Holdings jumps on cenbank nod for unit merger

Ujjivan Financial Services

12/07/2021 05:51

** Shares of lender Equitas Holdings Ltd  EQHL.NS  jump 20%
to 138.2 rupees, their highest since mid-June 2019
    ** Co gets the Reserve Bank of India's nod to merge unit
Equitas Small Finance Bank  EQUI.NS  with itself, Equitas
Holdings said https://www.bseindia.com/xml-data/corpfiling/AttachLive/e00e22dc-1001-4ab0-b31b-be8cab31a901.pdf
 on Saturday
    ** Equitas Small Finance rises as much as 17.9% to a record
high
    ** The central bank permitted the bank to apply for a scheme
of amalgamation - Equitas Holdings 
    ** Lender says it has started process to finalise the scheme
and submit it for further approval
    ** RBI's move to allow small finance banks to initiate
reverse merger with holding companies upon five years after
starting business is positive for listed holding companies,
including Ujjivan Financial Services  UJVF.NS  and Equitas that
may complete five years by Q3 and Q4 2021 - Jefferies
    ** Ujjivan Small Finance Bank  UJJI.NS  up 6.3%, while
shares of its holding co Ujjivan Financial Services jump 20%;
IDFC Ltd adds 9.6% 
    ** Including session's gains, Equitas Holdings up about 103%
YTD

 (Reporting by Vishwadha Chander in Bengaluru)
 ((Vishwadha.Chander@thomsonreuters.com))