RBI’s nod to SFBs will unlock price for Ujjivan
Ujjivan Small Finance Bank NSE 1.48 is claimed it’d initiate steps for the integration of the company Ujjivan money Services Ltd with the bank when RBI’s nod. Samit Ghosh, Founder, Ujjivan money Services, helps us in understanding, however, it should be decent news for shareholders.
Now that, RBI has given nod to SFBs and various holding firms to use for a merger, facilitate us in understanding how could this help in unlocking share price for you?
This is especially excellent news that we tend to be expecting for quite your time and initial within the line in fact is Equitas. Equitas and us., we tend to work earlier on this and that we area unit glad, it returns through. There’s a company structure within which is that the Ujjivan money Services Ltd.
NSE 20.00 you which ones own the bank Ujjivan Small Finance Bank and that we own eighty-three of the bank. therefore, what the tally has committed is that the holding firms will reverse merge into the bank and there’ll be one entity.
Before that, there was the uncertainty of this and consequently, we tend to area unit the company stock-UFSL stock was anyplace between four-hundredth to five hundredth discount. Now, this discount can bit by bit slim, so, there’s an incredible upper side on the Ujjivan money services stock.
The stock of the bank depends on how the bank performs in terms of business, however, this is often very excellent news for the Ujjivan money Services stock- the company stock, which was the initial shareholders. we’ve got concerning 80,000 retail shareholders out of that there is a minimum of 10,000-15,000 worker shareholders, who originally invested within the bank and this is often very excellent news for them.
Our fifth year is in February 2022, and that we will apply 3 months before that -for the reverse merger with RBI as per its new direction. RBI can appraise the proposal and see whether or not we can plough ahead, chances are high that things are traditional, we’ll be allowed to reverse merge.
There’s one issue that was there, by the fifth year the holding of the company was needed to come back right down to four-hundredth however we tend to are quite assured that since RBI is permitting Us. to wholly reverse, abundant of it- at the top of 5 years, reaching to be waved, therefore we tend to don’t suppose that’s a difficulty in the least. it’s decent news for the company shareholders.
When can this merger method be completed?
We can apply in late October month and so tally will provide us. the approval, I believe the method cannot begin before our fifth day of remembrance, that is early February 2022 and therefore the whole legal and everyone that clauses NCLT etc. will take anyplace between eight to twelve months, so, that’s the sort of your time frame we tend to are watching.
So, the foremost vital factor to try and do is proactively facilitate our client base to urge immunized, in the meantime, RBI has given plenty of restructuring, opportunities permanently customers and conjointly to supply the extra money, that is incredibly vital as a result of individuals have either exhausted their savings or their capital and not solely the restructuring however providing them with the additional money would facilitate them however this has got to be fastidiously done just for our sensible customers which method is a type of a long method.
So, I believe there’s time until September, the bank is an enterprise that and most small finance establishments are an enterprise that, it’s to be done fastidiously and that I suppose which will facilitate us to urge out of the crisis.