Equitas Small Finance Bank Shareholders Approve ₹1,250 Crore QIP and ₹500 Crore Debt Issue

Equitas Small Finance Bank shareholders have approved two plans for raising funds, which give the bank scope to raise a total of ₹1,750 crore through equity and debt routes. 

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Equitas Small Finance Bank got shareholder approval for a qualified institutions placement of ₹1,250 crore at its 10th annual general meeting held on September 9. Another proposal will help it raise an additional ₹500 crore through unsecured non-convertible debentures or other debt instruments. 

The above were among the 10 proposals placed before shareholders during their meeting and which received requisite majority support at that meeting. 

QIP Proposal Draws 95.9% Support 

The ₹1,250 crore QIP received 651.06 million votes in favour, accounting for 95.917% of valid votes cast. About 27.71 million votes, or 4.083%, were cast against it. 

The approval gives Equitas the option to tap eligible institutional investors by issuing equity shares or other eligible securities for an aggregate amount of up to ₹1,250 crore. 

Shareholders were even more emphatic on the debt proposal. Nearly 99.999% of valid votes supported raising up to ₹500 crore through redeemable unsecured non-convertible debentures, bonds or other debt securities. 

That money can be raised in one or more tranches or series through private placement. Equitas intends to use the proceeds to augment Tier-II capital and for general corporate purposes, while staying within its overall borrowing limits. 

Vasudevan P N to Continue as MD and CEO 

The AGM also settled the question of leadership for the next three years, with shareholders approving the re-appointment of Vasudevan P N as managing director and chief executive officer. 

His new term runs from July 23, 2026 to July 22, 2029. The board had cleared the proposal in June before it was placed before shareholders. 

Vasudevan’s re-appointment received 99.995% support from valid votes cast. His remuneration was put to a separate vote and passed with 99.966% support. 

Balaji Nuthalapadi, who retires by rotation, was re-appointed as a director. Shareholders also cleared the remuneration payable to him in his role as executive director and whole-time director. 

Geeta Dutta Goel Re-Elected for Second Board Term 

Independent Director Geeta Dutta Goel has been retained on the board for a further three years following her re-election with 99.726% approval. 

The second consecutive term commences on December 27, 2026 and ends on December 26, 2029. 

Out of the total valid votes polled at the Special Resolution, 676.92 million were for while 1.86 million were against. 

Sundaram & Srinivasan Joins as Statutory Auditor 

Shareholders also chose Sundaram & Srinivasan as one of the bank’s joint statutory auditors, with 99.999% of valid votes supporting the appointment. 

The chartered accountancy firm’s tenure starts from the conclusion of the 10th AGM and is intended to run until the end of the 13th AGM in 2029. 

Its continuation during that period will depend on meeting the prescribed eligibility requirements each year as well as receiving annual approval from the Reserve Bank of India. Shareholders separately cleared the remuneration payable to the joint statutory auditors for FY2026-27. 

Ten Resolutions Pass at September AGM 

The remaining business included approval of the audited financial statements for the year ended March 31, 2026. That resolution received 99.999% support from valid votes. 

The meeting was held through video conferencing on September 9, running from 11 am to 12:06 pm. Remote voting had opened three days earlier on September 6 and closed on September 8, while members who had not voted beforehand were given another opportunity during the AGM. 

There were 365,457 shareholders on record as of the September 2 cut-off date, while 73 public shareholders attended the meeting through video conferencing. 

Mohan Kumar & Associates, represented by A Mohan Kumar, scrutinised the voting. National Securities Depository Limited provided the electronic voting platform. 

Of all the proposals on the ballot, the QIP attracted the largest share of opposing votes at 4.083%. It nevertheless secured the special majority required, leaving Equitas with shareholder approval for both the ₹1,250 crore institutional placement and the separate ₹500 crore debt programme.