Equitas Small Finance Bank may launch IPO on October 20

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 of shares for Equitas Holdings’ shareholders.

Equitas Small Finance Bank (SFB) was the largest small finance bank in India in terms of a number of banking outlets, and the second-largest SFB in India in terms of assets under management and total deposits in Fiscal 2019, the CRISIL report said.

The stock price of Equitas Holdings closed at Rs 51.70 apiece on BSE, down 2.18% from the previous close.

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