Equitas Small Finance Bank may launch IPO on October 20


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Equitas Small Finance Bank may launch IPO on October 20

The initial public offer (IPO) of Equitas Small Finance Bank (ESFB) is expected to be launched on October 20, 2020. The issue was earlier scheduled for subscription by the end of March 2020. However, the offer was put on hold due to the spread of COVID-19 disease.

Equitas Small Finance Bank (ESFB) had earlier filed the draft red herring prospectus (DRHP) on December 16, 2019.

The fresh issue of equity shares for its proposed IPO was revised recently downward to Rs 280 crore from Rs 550 crore planned earlier. The IPO consists of a fresh issue of 8 crore equity shares and an offer for sale of 7.2 crore equity shares.

“The size of the fresh issue has been reduced from up to Rs 5,500 million (Rs 550 crore) to up to Rs 2,800 million (Rs 280 crore) and the number of equity shares offered through the offer for sale by the company (EHL) has been reduced from up to 80,000,000 equity shares to up to 72,000,000 equity shares,” EHL said in a regulatory filing.

Reportedly, merchant bankers might have fixed the price band at Rs 34-35 per share and the closing date for the issue could be October 22, 2020. The total issue size could be Rs 532 crore, as per the price band.

JM Financial, Edelweiss Financial Services and IIFL Securities have been appointed as book-running lead managers to the ESFB IPO.

As per the additional information to its DRHP filed with the market regulator, promoter Equitas Holdings held 95.49 per cent stake in Equitas Small Finance Bank. The offer includes a reservation of up to Rs 1 crore worth of shares for eligible employees of Equitas Small Finance Bank and Rs 51 crore

For more than five years, Frank Hunt’s moving company has been a pillar of his community in Barrie, Ont., but he says his award-winning business is now on its knees — and he blames his insurance company. 

“They’re killing us. They’re literally shutting down the business,” he told CBC News. He says onerous demands from his insurer have led to a loss of about 75 per cent of his revenue.

Hunt, 73, says his company pays about $10,000 for commercial vehicle insurance each year. He says there have been no claims or accidents. “Not even a broken windshield,” he said.

His problems began in May, when his insurer suddenly demanded his drivers upgrade their licences to beyond what Ontario’s Ministry of Transportation requires. He and his drivers are legally allowed to drive the company’s five-ton moving trucks with a basic G licence.

“This year, the insurance company comes up with, ‘Oh, you’ve got to have a different licence, a D licence, or you can’t drive.’ I only have a G licence, so I can’t even drive my own vehicles anymore,” Hunt told CBC News.

The Insurance Bureau of Canada says if small business owners want to know why their policy requirements are getting tighter and their premiums are getting higher, they should look no further than COVID-19. The bureau says insurers “have been confronted with increased costs” due to the pandemic.

But that’s little consolation to Hunt and his wife Karina Shaak, 65. They tried to switch insurance companies. They were told they couldn’t, unless they agreed to pay much higher premiums — as much as $25,000, more than double what they previously paid.

So the couple hired new drivers with D licences, or higher. Their insurer refused to cover them, though, claiming the new hires didn’t have three years

By Corina Pons, Luc Cohen and Mayela Armas

CARACAS (Reuters) – Three small investment funds have started buying defaulted Venezuelan bonds as hopes of a change of government are fading and the South American nation is proposing a restructuring, according to sources and documents.

Canaima Capital Management, headquartered on the English Channel island of Guernsey, Uruguay-based Copernico and Cayman Islands-based Altana have bought heavily discounted bonds with face value of hundreds of millions of dollars, according to eight finance industry sources in Caracas, New York, Miami, Madrid and London.

The funds appear to be part of a small group of contrarian investors bucking the broader market consensus, which maintains there is little value in Venezuelan bonds that have not been serviced in nearly three years amid an economic crisis.

The funds believe it is time to act and to evaluate legal options instead of waiting for a friendly negotiation with allies of Juan Guaido, who is recognized by more than 50 countries as Venezuela’s interim president, even though he still hasn’t taken power.

The funds argue investors may be unable to recover missed interest payment after 2020 due to a statute of limitations clause in the bonds’ covenants – an assertion flatly denied by the main committee for Venezuela creditors.

Nonetheless, the efforts to amplify these concerns has fueled nervousness and increased the willingness of bondholders to sell their notes, according to four Venezuelan finance industry sources.

Altana, which two sources said was offering to buy bonds this year, has already taken legal action against Venezuela to try to force payment. In an Oct. 8 complaint filed with the United States District Court for the Southern District of New York, the fund demanded payment from Venezuela on $108 million of defaulted bonds.

That came after investment funds Casa Express and

Investment Thesis

High unemployment rates and financial challenges among small businesses are two big problems that the markets are ignoring. Such problems may have negative impacts on the economy as a whole as small and medium enterprises (SMEs) make the majority of all businesses in America. PS Business Parks (PSB), which have a large tenant base of SMEs, is at risk as small business America struggles to recover. While PSB is an excellent company with desirable qualities, prices do not offer an adequate margin of safety. I rate shares a Hold.

The Elephant In The Room

Back in March, analysts and reporters were having a debate on which letter of the alphabet would illustrate recovery in the next few months or years: J, L, U, V, W, K? Economically speaking, we’re seeing more of an alphabetti spaghetti. E-commerce is having a J-recovery as people are smashing the “Buy now with 1-Click” button in Amazon (AMZN) than ever before. Airlines are having an L-shaped recovery with passenger traffic slowly increasing week-by-week. The entertainment and tourism industry is still in limbo and recovery should look like a U-shape once the vaccine arrives. Restaurants, on the other hand, may face the threat of a double-dip, W-shaped recovery if another lockdown were to happen. In short, we’re seeing disproportionate recovery across all sectors. All this is happening while the stock market is rallying to new all-time highs as if the pandemic did not really happen. So, equity market-wise, we’re looking at a V-shaped recovery… for now.

What is concerning is that the markets are ignoring the elephant in the room: sky-high unemployment rate. Yes, the number is improving from its high of 14.7% in April. However, weekly initial jobless claims have remained at about 800,000 for nearly two months, showing a significant deceleration in

NEW YORK — The final three months of the year, usually a boom time for many small businesses thanks to holiday shopping and celebrations, looks precarious as the coronavirus maintains its grip on the economy.

Owners contending with government restrictions or crumbling demand are trying to hold on, with some creating new products and services or desperately searching for new customers. Others, however, have found they’re already well equipped to meet the lifestyle changes brought about by the pandemic.

The big corporate and non-profit parties and events that Sophia D’Angelo ran before the virus outbreak have just about vanished. Large in-person gatherings that companies typically use to launch or promote their brands aren’t possible because of social distancing requirements.

“The fourth quarter was always the bulk of my business,” says D’Angelo, who owns Boston Experiential Group, based in Boston.

OUTDOOR HEATERS ARE LATEST MUST-HAVES IN CORONAVIRUS ERA

D’Angelo has had to get creative. She’s using her expertise to arrange small gatherings like holiday-themed dinners and parties at people’s homes, usually for no more than 10 guests.

The fourth quarter is a key time for many industries and companies of all sizes. Some retailers typically expect to make as much as half their annual revenue during the holiday shopping season, as do many of their suppliers. Any business connected with holiday parties and celebrations also has high hopes for the October-December period.

This photo provided by Adam M. Rammel shows the beer garden at The Syndicate on Aug. 20, 2020 in Bellefontaine, Ohio. Many restaurants, event planners and even companies like distillers and corporate gift manufacturers face weaker revenues although t

But conditions are dicey this year. The coronavirus has devastated many small businesses; it’s estimated that hundreds