Equitas Holdings (EHL) has proposed a new scheme of arrangement to list its small financing bank arm--Equitas Small Finance Bank (ESFB), after being denied an extension to the listing deadline by the RBI as well as approval to reverse the merger proposal by Sebi. Under the new scheme, EHL has proposed to capitalize on free reserves of Equitas Small Finance Bank and issue shares of the subsidiary to its shareholders without cash consideration.
Equitas Holdings is a diversified financial services provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels.