India: lnduslnd Bank-Bharat Financial Inclusion Merger to Be Effective from July 4
India, June, 20 2019 -
IndusInd Bank in October last year decided to acquire the country's leading micro-finance player BFIL, which was previously known as SKS Microfinance. The newly formed company will operate under the name "Induslnd Financial Inclusion Ltd".
Private sector lender lnduslnd Bank and Bharat Financial Inclusion Ltd (BFIL) on Wednesday said their merger will be effective from July 4. The National Company Law Tribunal on June 10, 2019 approved the Scheme of Arrangement among BFIL, lnduslnd Bank and Induslnd Financial Inclusion and their respective shareholders and creditors.
IndusInd Bank in October last year decided to acquire the country's leading micro-finance player BFIL, which was previously known as SKS Microfinance.
The boards fixed Thursday, July 4, 2019 as the effective date of the scheme, when the NCLT order will be filed by the bank, BFIL and IFIL with the jurisdictional Registrar of Companies.
Besides, the Boards Wednesday have decided to take on record and publish consolidated financial results for the quarter ending June 30, 2019, on July 12, 2019.
"July 4, 2019 shall also be the Record Date, following the effectiveness of the scheme, for determining the shareholders of BFIL who shall be entitled to receive shares of the bank, as consideration pursuant to the Scheme," both the companies said in regulatory filings.
In accordance with the scheme, Bharat Financial shareholders will get 639 shares of the bank for every 1,000 held.
The scheme also contemplates a preferential allotment of share warrants to the promoters of the bank in accordance with the scheme, it said.
"Each share warrant, upon exercise, shall entitle the Promoters to one Equity share. The Share Warrants shall be issued to the Promoters of the Bank at Rs 1,709 per warrant, which has been determined in accordance with the applicable SEBI regulations, and is confirmed by the NCLT order," it said.
Pursuant to the scheme, the Promoters of the bank will pay an amount equivalent to 25 per cent of the aggregate consideration for the share warrants on the effective date.
All the employees of BFIL will become part of Induslnd family and M R Rao, currently MD and CEO of BFIL, will become the MD & CEO of IFIL, it said.