MUMBAI (Reuters) – India’s AU Small Finance Bank will merge with Fincare Small Finance Bank, it said in an exchange notice late on Sunday.
Shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held as part of the merger agreement.
After the merger, existing shareholders of Fincare will hold close to 9.9% in AU Small Finance Bank, an accompanying investor presentation said.
The combined entity will have a balancesheet of 1.1 trillion rupees ($13.21 billion).
The transaction is subject to approval from the Reserve Bank of India. The appointed date for the amalgamation is set for Feb. 1, 2024.
($1 = 83.2770 Indian rupees)
(Reporting by Ira Dugal; Editing by Rashmi Aich)