Equitas Small Finance Bank stock took a beating in Monday's trade by as much as 10%. The stock made an intra-day low of Rs. 104.40. The stock has cracked after the company has given a proposal to list the stock of ESFB.
Earlier last week, the apex bank denied Equitas Holding Limited's request of extending the listing deadline for ESFB. As per the norms of the RBI, the small finance bank was required to be listed on the bourses on or before September 4 and command a net worth of Rs. 500 crores.
EHL also took to the market regulator for a reverse mortgage but the latter rejected its plea.
In the new scheme proposed, EHL was to make use of the free reserves of ESFB and issue shares of the small finance bank without any cash payout to its shareholders.
This scheme of arrangement is subject to approval from SEBI, RBI, NCLT, shareholders, and creditors.
Shares of ESFB were last trading down by 7% at Rs. 107.20, down Rs. 8.80.