Equitas Small Finance Bank Limited has fixed a price band of ₹32-33 per equity share for its initial public offering (IPO). The three-day share sale which will open for subscription during 20-22 October aims to raise ₹517.6 crore at the upper end of the price band.
The IPO comprises a fresh issue aggregating up to ₹280 crore and an offer for sale of up to 72,000,000 equity shares by Equitas Holdings Limited. Bids can be made for a minimum of 450 equity shares and in multiples of 450 thereafter.
Equitas Small Finance Bank intends to seek in-principle approval from the Reserve Bank of India to undertake a merger of its promoter Equitas Holdings Limited with self, such that the merger would be effective from 4 September, 2021. It has also sought in-principle approval for dilution of EHL’s shareholding in the bank pursuant to such merger.
Objective of the offer is to be listed on both the BSE Limited and the National Stock Exchange of India Limited (NSE).
JM Financial Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the book running lead managers to the offer.
Equitas Small Finance Bank is the largest small finance bank in India in terms of number of banking outlets, and the second largest in India in terms of assets under management and total deposits in financial year 2019. Products include small business loans, housing loans, and agriculture loans, vehicle loans, MSE loans etc. On the liability side, they offer current accounts, salary accounts, savings accounts, and a variety of deposit accounts to their clients. In addition, it also provides non-credit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTags.
Its gross advances was at ₹15,572.91 crore as of 30 June 30, of which secured advances constituted 75.75% by the quarter. Their deposits grew at a CAGR of 38.75% from ₹5,603.97 crore as of March 2018 to ₹10,788.41 crore as of 31 March 2020.
