India's Equitas Holdings Ltd. plans to sell its 47% stake in wholly owned unit Equitas Small Finance Bank Ltd. to existing shareholders as part of the former's plan to list the subsidiary.
The company will issue 892,062,982 fully paid-up equity shares of the small finance bank to shareholders for no cash consideration, subject to regulatory approvals, according to a Feb. 1 stock exchange filing.
In November 2014, the Indian central bank mandated Equitas Small Finance Bank to list by September 4, 2019, three years from the date it started its operations. It also mandated Equitas to maintain a minimum stake of 40% in the small finance bank for five years and is required to reduce its stake to 40% by Sept. 4, 2021.
In November 2018, Equitas said it was evaluating options for listing its wholly owned unit without going through the IPO route.
