The stock price of Equitas Holding dropped 17% at Rs.97.30 in the morning trades. It has recovered from this intraday low level but continues to trade in the red at Rs.101 levels.

The stock price tanked on news that the company’s draft scheme for listing its wholly-owned subsidiary Equitas Small Finance Bank (ESFB) has been returned by SEBI.

SEBI has asked the company to re-submit the same after ensuring compliance with the provisions mentioned in the SEBI circular.

The company said that it will initiate necessary steps to list its shares through Initial Public Offer (IPO) which is expected to be completed by March 2020.

Equitas Small Finance Bank was co to list on or before September 4, 2019 and last week, RBI refused to extend the SFB's listing deadline and barred it from opening new branches. The regulator also froze the pay of MD and CEO.