Equitas Holdings Limited (BSE:539844) 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). 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 sale of its entire shareholding in the company's subsidiary, ETPL," Equitas Holdings said in a regulatory filing on January 8, 2022. Equitas Holdings said it has appointed SBI Capital Markets Limited (SBICAPS) to advise on the strategic buyout and/or stake sale of ETPL. SBICAPS is in the process of undertaking a public auction process to identify potential buyer(s) and complete the transaction, it added.