AU Small Finance Bank has received approval from the Reserve Bank of India (RBI) for Zulia Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings, to acquire up to 7% of the paid-up share capital or voting rights in the bank.
The approval, granted in a letter dated February 12, 2025, allows Zulia Investments, along with its persons acting in concert and associate enterprises, to complete the acquisition within one year from the date of the RBI approval. If the transaction is not completed within this timeframe, the approval will be deemed canceled.
The RBI’s approval is subject to compliance with relevant provisions under the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies (issued on January 16, 2023, and amended from time to time), Foreign Exchange Management Act, 1999, and other applicable regulations issued by SEBI and other regulatory authorities.
This development marks a significant investment move in AU Small Finance Bank, further strengthening Temasek Holdings’ presence in India’s financial sector. Investors and market participants will be watching for further developments regarding this acquisition.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.
