This Ashish Dhawan-Backed Small Cap Stock Is Rising As HDFC AMC Gets Investment Nod

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.

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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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Posted In: EquitiesMutual FundsMarketsMoversTrading IdeasEquitas Small Finance BankHDFC