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Competition Commission of India (CCI) has approved the proposed merger of Fincare Small Finance Bank Limited into and with AU Small Finance Bank.
The board of the bank had approved the merger in October 2023 following which it received the shareholder approval in November 2023. The merger is now awaiting the approval of the Reserve Bank of India.
AU SFB had then said that the merger will help the bank expand its reach, diversify the offerings and promote its financial inclusion portfolio. It had also guided that the merged entity should come into effect from February 1, 2024, subject to necessary approvals.
The share exchange ratio for the amalgamation is expected to be 579 equity shares of AU SFB for every 2,000 equity shares Fincare SFB, with a face value of ₹10. As per this, Fincare SFB is valued at around three times price to book based on Q2 FY24 financials and AU SFB at approximately four times price to book.
AU SFB had assets of ₹ 95,977 crore and net worth of ₹ 11,763 crore as of September 2023, whereas Fincare SFB had assets of ₹ 14,777 crore and net worth of ₹ 1,539 crore.
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