After receiving approval for the reverse merger of Equitas Holdings Limited into Equitas Small Finance Bank on January 17, 2023. Equitas Holdings has set February 03, 2023, as the record date to determine the shareholders who will be eligible to receive the shares of Equitas Small Finance Bank.
As a result, the shares of Equitas Holdings will be suspended from trading from February 3, 2022, onwards and you will not be able to see these in holdings on Kite. As per the scheme of arrangement, shareholders of Equitas Holdings will receive 231 shares of Equitas Small Finance Bank for every 100 shares held in Equitas Holdings. You can check the announcement here.
While any fractional entitlements will be cash-settled and the amount will be directly credited to your primary bank account.
When will I receive shares of Equitas Small Finance Bank?
The credit of shares can take between 30 - 45 days from the record date. You’ll receive an email from CDSL once the shares are credited to your demat account.
When will the allotted shares start trading on the exchanges?
After the credit of Equitas Small Finance Bank shares, the company will have to take approval from the exchanges to list and start trading in the newly allotted securities.
What will be the average price for allotted shares of Equitas Small Finance Bank?
The average price of allotted Equitas Small Finance Bank shares will be calculated as follows: Invested value in Equitas Holdings / The number of Equitas Small Finance Bank shares received including fractional shares.
For example, if you had invested in 100 shares of Equitas Holdings at a price of Rs. 100, the invested value will be Rs. 100,00.
If you receive 231 shares of Equitas Small Finance Bank, the average price will be Rs. 43.29 (10,000 / 231).
The fractional shares are cash settled, and the amount for these will be directly credited to your primary bank account as and when the trustee appointed by the company sells the shares.
When will I receive the amount for fractional entitlement?
If there is any fractional entitlement, the equivalent amount will be directly credited to your primary bank account after the trustee appointed by the company sells the shares
What if I hold less than 100 shares of Equitas Holdings?
Even if you hold less than 100 shares of Equitas Holdings, you will receive an allotment of Equitas Small Finance shares.
For example, if you hold 10 shares of Equitas Holdings, your allotment comes at 23.1 shares (10 x 23.1). 23 shares will be credited to your demat account. 0.1 will be fractional and the amount for this will be credited to your primary bank account.