DSP Investment Managers Private Ltd (DSPIM) has acquired a 10 per cent stake in Equitas Small Finance Bank for an undisclosed amount following approval from the Reserve Bank of India.
The bank has received an intimation from the RBI on November 16, 2022, that it has granted approval to DSP Investment Managers to acquire up to 9.99 per cent of the paid-up equity capital of the bank through the schemes of DSP Mutual Fund (DSPMF), the bank said in a regulatory filing on Thursday. Shares of Equitas Small Finance Bank rose by 5.83 per cent to Rs 53.55 on the BSE on Thursday.
The proposed acquisition of shares by DSPIM would be consequent to the Scheme of Amalgamation of Equitas Holdings Limited with the bank taking effect. The approval by the RBI is subject to compliance with the relevant provisions of various regulations relating to the RBI and the Sebi, it said.
According to the RBI norms, every person or an entity who intends to make an acquisition in private banks of more than 5 per cent of the equity capital has to take prior approval from the central bank. In May this year, Equitas Holdings and Equitas Small Finance Bank (SFB) were approved by their respective boards for their merger. The merger is aimed at meeting the RBI’s licensing conditions to bring down the shareholding of the holding company to 40 per cent within a period of five years from the date of commencement of business of the bank, which was completed by September 4, 2021. The promoter holds 74.50 per cent stake in the bank.
The bank reported a net profit of Rs 116.42 crore during the quarter ended September 2022.