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The Reserve Bank of India has approved DSP Investment Managers’ acquisition of up to 9.99 per cent stake in Equitas Small Finance Bank on Wednesday, the bank informed the exchanges.
DSP Investment Managers will acquire up to 9.99 per cent of the paid-up equity capital of the bank through the schemes of DSP Mutual Fund, following the amalgamation of parent company Equitas Holdings Limited with the bank.
The approval is valid for one year, till November 15, 2023, said the exchange filing. The companies had announced the merger in May to comply with the regulatory norms on licensing, according to which, a promoter needs to reduce their shareholding in a bank to 40 per cent within five years from the commencement of business.
The five-year period for Equitas Small Finance Bank ended on September 4, 2021. As of end of September 2022, Equitas Holdings held 74.5 per cent stake in the bank.
Mutual funds currently collectively hold 13.17 per cent stake in Equitas Small Finance Bank as of September-end. The largest share was held by Nippon Life Mutual Fund at 3.9 per cent, followed by HDFC Mutual Fund at 3.4 per cent and SBI Mutual Fund at 3.1 per cent.
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