AU Small Finance Bank announces a merger with Fincare SFB

AU Small Finance Bank , the leading SFB in India, has announced that it is all set to merge with Fincare SFB. It is expected to be completed by February 01, 2024, subject to regulatory approvals. Upon the completion of the merger, Fincare will be amalgamated into AU SFB to form a single combined entity. Established in 2017, Fincare is a small finance bank with a dominant presence in South India. It is present in 23 states and has served over 53 lakh customers. It primarily deals with microfinancing, business loans, gold loans and housing loans. Here are some key points of the merger that investors must be aware of: This merger is structured in an all-share deal whereby existing Fincare SFB shareholders shall receive 579 shares of AU Small Finance Bank for every 2,000 shares held in Fincare. Post-merger, the existing shareholders of Fincare SFB shall hold 9.9 per cent in AU SFB. Finance Business Services, the promoter of Fincare SFB, will infuse Rs 700 crore into the company before the completion of the merger. Rajeev Yadav, the current MD and CEO of Fincare SFB, will