Shares of Equitas Small Finance Bank were gaining on Thursday after the Reserve Bank of India gave an HDFC fund approval to invest in the microfinance lender.
What Happened: The bank said in an exchange filing that HDFC Asset Management Company Limited had been granted approval by the central bank to buy a stake in the firm.
HDFC Asset Management Company can acquire an “aggregate holding” of up to 9.5% of the paid-up equity capital or voting rights of the small finance lender, which would be worth a little under ₹900 crore at Equitas’ current market cap.
According to the latest shareholding data, ace investor Ashish Dhawan holds a 3.63% stake in the microfinance lender. Other notable investors in the lender include the Government Of Singapore, Societe Generale – Odi and the Massachusetts Institute Of Technology.
Price Action: Equitas Small Finance Bank’s share price was up 1.73% at ₹85.30 around noon on Thursday. The stock has gained nearly 42% so far this year.
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