Ujjivan Small Finance Bank reverse merger hearing date set for January 30 (2024)

The National Company Law Tribunal (NCLT) is set to conduct a pivotal hearing on January 30, 2024, regarding the approval of the reverse merger between Ujjivan Small Finance Bank Ltd and Ujjivan Financial Services Ltd, the Bengaluru-headquartered lender said.

"We hereby inform that the order dated December 07, 2023, as pronounced by the NCLT has been uploaded on the NCLT website today (i.e., December 15, 2023).

As per the said Order, the Joint Petition has been listed for hearing on January 30, 2024. In the due course, we will ensure that all the necessary instructions as stated in the said Order will be complied within the directed timelines," the bank said.

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The joint petition, filed on November 10, 2023, has progressed to this crucial phase, seeking sanction under sections 230 to 232 and other relevant provisions of the Companies Act, 2013.

The merger was announced by the bank on October 14, 2022. Currently, Ujjivan Financial holds 73% shareholding of Ujjivan Small Finance Bank and the holding company is 100% public.

Following the reverse merger, the promoter is required to reduce its stake in the shareholding of Ujjivan Small Finance Bank to 40% within a period of 5 years from the date of operations. Subsequently, it will be required to be brought down further to 26% with a period of 10-12 years.

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Ujjivan Small Finance Bank, which is a subsidiary of Ujjivan Financial Services and is registered with the Reserve Bank of India (RBI) as a small finance bank, is engaged in the banking business with a focus on financially unserved and underserved segments.

Shares of Ujjivan Small Finance Bank Ltd ended at ₹59.52, down by ₹0.44, or 0.73%, on the BSE.