Equitas Holdings will divest its entire stake in subsidiary Equitas Technologies Pvt Ltd (ETPL) as part of the requirement for the merger with Equitas Small Finance Bank (ESFB).

Under the RBI’s licensing conditions, being the promoter of ESFB, the boards of Equitas Holdings and ESFB had in July 2021 approved the scheme of amalgamation between them.

According to this scheme, all the assets held by Equitas Holdings, including its investments in ETPL, have to be transferred to and vested in ESFB.

“Since ETPL is not engaged in financial services, the company is required to fully divest its investment in ETPL. Accordingly, the board of directors in its meeting held on January 7, 2022, approved the sale of its entire shareholding in the company’s subsidiary, ETPL,” Equitas Holdings said in a regulatory filing on Saturday.

Equitas Holdings Ltd (EHL) has two subsidiaries — ESFB and ETPL. The latter is engaged in the business of freight aggregation.

Equitas Holdings said it has appointed SBI Capital Markets (SBICAPS) to advise on the strategic buyout and/or stake sale of ETPL.