Utkarsh Small Finance Bank to merge with parent company
The Board of Directors of Utkarsh Small Finance Bank Limited (USFBL) has given approval for merger with its parent company, Utkarsh CoreInvest Limited (UCL), in their meeting held on September 20, 2024. The scheme of merger aims to simplify operations, enhance shareholder value, and create a stronger entity. This is a big step to align the interests of both the entities and leverage their combined strengths.
Exchange Ratio: The share exchange ratio for the amalgamation is 699 shares of USFBL for every 100 shares of UCL.
Another key aspect of the merger is the lock-in period of 21,97,52,029 equity shares held by UCL in USFBL.
The scheme will be sanctioned by NCLT or any other authority under the Companies Act. All necessary compliances and approvals from RBI, stock exchanges, and other government authorities are to be completed before the scheme comes into effect.
