Equitas SFB Shares Down 13% on New Listing After Merger with Equitas Holdings

Equitas Small Finance Bank Ltd shares fell 11.36%.

Shares of Equitas Small Finance Bank (SFB) fell 13% to Rs 63.81 on the BSE in intraday trade on Friday after Equitas Holdings listed 789.53 million new shares following the merger with the bank. The stock has fallen 15% over the past two sessions. It touched a 52-week high of Rs 77.87 on Monday, March 6, 2023.

“A total of 933.94 million shares in Equitas SFB have been cancelled due to Equitas Holdings’ cross-holding in Equitas SFB,” the BSE said in a notification dated March 9, 2023.

Equitas SFB traded 12% lower at Rs 64.69 on the BSE at 9:26 am. The S&P BSE Sensex fell 1.2% to 59,103.

Despite losses over the past two sessions, the stock has risen 17% over the past three months, outperforming the benchmark index’s 5% decline. It has risen nearly 40% over the past six months, compared with a 1.2% decline for the Sensex.

As a new-age bank, Equitas SFB offers a range of products and services tailored to meet the needs of individuals with limited access to traditional financing, as well as affluent and mass affluent small and medium enterprises (SMEs) and corporates.

In the October-December quarter (Q3FY23), Equitas SFB reported a profit after tax (PAT) of Rs. headcount to support business growth.

Meanwhile, the overall NPA ratio fell to 6.3%, while the bank drew down Rs 400 crore from the contingent buffer (currently at Rs 60 crore/3% of loans), analysts said.

Due to strong underlying demand, the bank expects FY23 growth to remain healthy at 25%.

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