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

FRANKFURT (Reuters) – Swiss Re SRENH.S and carmaker Daimler DAIGn.DE announced a joint automotive and mobility insurance venture on Monday, seeking to tap into a wealth of new data generated by highly automated vehicles to help insurers to calculate risk.

FILE PHOTO: The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke

The reinsurer and Daimler, parent of the Mercedes-Benz passenger car brand, set up Movinx, a Berlin-based intermediary they will co-own equally, the companies said in a statement.

As connected and autonomous cars generate live data about traffic flows, vehicle reflexes and driver behaviour, the companies expect new opportunities will arise to customise automotive and mobility insurance products.

“Even before cars come off the manufacturing line, we know the specific features and how that car would react in an emergency situation and we can provide a score to insurance partners to better underwrite the risk,” said Pravina Ladva, Swiss Re’s digital transformation officer.

Swiss Re already offers to price risk by looking at the number of advanced driver assistance systems (ADAS) fitted to a car, calculating a car’s capability under various traffic conditions considering safety as well as the cost of repairs.

Daimler, which has spent decades refining advanced driver assistance systems, sees an opportunity for monetizing its know-how about vehicle safety.

Ingo Telschow, chief executive of Daimler Insurance Services, said his company was “going deeper into the value chain of insurance business, having more influence on product development and pricing.”

Aside from technological advances in the area of automated and connected vehicles, customer behaviour is also shifting from long-term ownership to short-term usage, creating new insurance challenges in the area of pricing and claims handling.

Movinx will position itself as a so-called Managing General Agent (MGA) to help insurers

A group of Black Atlanta businessmen, politicians and entertainers — including former Atlanta Mayor Andrew Young, the entertainer Michael Render (better known as Killer Mike) and Bounce TV founder Ryan Glover — have launched a new digital bank focused on developing and promoting local communities and cultivating Black and Latinx entrepreneurs and small businesses.

Named Greenwood in an homage to the thriving Tulsa, Oklahoma, business community known as “Black Wall Street” that was destroyed by white rioters in 1921, the digital bank has several features designed to promote social causes and organizations for the Black and Latinx community.

For every sign-up to the bank, Greenwood will donate the equivalent of five free meals to an organization addressing food insecurity. And every time a customer uses a Greenwood debit card, the bank will make a donation to either the United Negro College Fund, Goodr (an organization that addresses food insecurity) or the National Association for the Advancement of Colored People.

In addition, each month the bank will provide a $10,000 grant to a Black or Latinx small business owner that uses the company’s financial services.

For Render, the decision to launch a new digital bank alongside Young and Glover was a way to link Atlanta’s well-established, centuries-old Black business community with the technologies that are redefining wealth and creating new opportunities in the twenty-first century. It was also a way to equip a new generation with financial tools that could empower them instead of undermine them.

“What I have learned about capitalism is that you’re either going to be a participant in it or a victim of it,” said Render. “The ultimate protest is focusing your dollar like a weapon.”

Young, who is also the U.S. ambassador to the United Nations, had seen the ways digital banking technologies were transforming the

Walmart  (WMT) – Get Report next week is set to launch a health-insurance service as coronavirus cases continue to be persistently high across most of the country.

In a blog post the Bentonville, Ark., retailer said Walmart Insurance Services, a licensed insurance brokerage, will “assist people with enrolling in insurance plans —and simplify what’s historically been a cumbersome, confusing process.”

Walmart will begin selling Medicare insurance plans during this year’s annual enrollment period, Oct. 15 through Dec. 7, the company said. 

The retailer did not specify the cost of these insurance plans but said it was committed to offering quality health care at “low, transparent prices.”

“We want customers to feel confident in selecting a Medicare plan that best fits their needs, budget and lifestyle,” said David Sullivan, Walmart’s general manager of insurance services, in a statement. 

At launch, Walmart Insurance will provide Medicare plans offered by health insurers like Humana,  (HUM) – Get Report UnitedHealthcare  (UNH) – Get Report, Anthem Blue Cross Blue Shield,  (ANTM) – Get Report Amerigroup, Simply Health, Wellcare (Centene)  (CNC) – Get Report, Clover Health and Arkansas Blue Cross and Blue Shield.

The Bentonville, Ark., company said more carriers may be added in the future.

Clover Health to Go Public Via Social Capital SPAC

Walmart’s insurance services are licensed in all 50 states and Washington D.C.

Last week Walmart reached an agreement to sell its underperforming grocery business in the United Kingdom for around $8.8 billion.

Shares of Walmart were little changed at $141.84 at last check.

 

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Canada’s largest licensed cannabis producer and its U.S. affiliate on Thursday revealed plans to launch THC-infused beverages in the U.S. market. Encouraged by recent beverage sales in Canada, Canopy Growth (NYSE:CGC) and Acreage Holdings (OTC:ACRGF) say they intend to bring similar options to U.S. consumers next summer.

Canopy Growth began shipping THC-infused beverages in Canada under the Tweed brand this spring. So far, the company has five of the top six performing products in the category there, and would like to achieve similar success in the U.S. with some help from what will eventually be its U.S. subsidiary, Acreage Holdings.

Acreage Holdings operates 27 marijuana dispensaries in the U.S. and has licenses it could use to open at least 40 more. In addition to selling Canopy Growth’s THC-infused beverages in stores operated by Acreage, the partners plan to leverage Canopy’s relationship with Constellation Brands (NYSE:STZ) to distribute them.

Canopy Growth’s efforts to market cannabis-infused beverages haven’t paid off for its shareholders yet. During its fiscal first quarter, which ended June 30, the company lost 128 million Canadian dollars and reported just CA$110 million in revenue.

Given the magnitude of those losses, North American beverage sales aren’t likely to be enough to stop the financial bleeding in the foreseeable future. Since this spring, the company has only sold 1.7 million cans of cannabis-laden soda water at around CA$4 per can. Also, at just 2 mg of THC per can, there just isn’t much for consumers to get excited about. Standard edible dosages start at 10 mg — a serving size most experienced cannabis users still consider ineffective.

This article originally appeared in the Motley Fool.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Brands. The Motley Fool has a