AU Small Finance Bank announced today that it will take into its fold, Fincare Small Finance Bank. As per the scheme, shareholders of Fincare Small Finance Bank will get 579 equity shares of AU Small Finance Bank Ltd for every 2,000 fully paid-up equity shares they own.
While AU Small Finance Bank started operations in April 2017, Disha Microfin (which later became Fincare SFB after a merger with Future Financial Services) commenced operations in July 2017.
The statement said that the appointed date of the scheme shall be 1 February 2024, or a date as may be fixed mutually by both companies and approved by RBI.
The Managing Director & CEO of Fincare SFB will become the Deputy CEO of AU SFB after the merger.
This merger is expected to give AU SFB a significant opportunity to expand deposit and asset franchise in South India.
The stock is in the red; it opened slightly in the green but after that slipped into the red, going down over 8.5% to hit an intraday low at Rs.630.90. It is currently among the top five losers on the BSE.