Equitas Small Finance Bank IPO | Initial Public Offering Details

 

The IPO of Equitas Small Finance Bank will come on October 20, 2020. The company has set a target of raising Rs 280 crore under the IPO. This information is given by the company in the regulatory filing. Earlier on October 11, 2020, Equitas Small Finance Bank filed RHP with the Chennai ROC regarding the IPO.

 

This IPO of Equitas Small Finance Bank will be the 12th IPO of 2020. The company has fixed its price band, which will be 32-33 rupees. This IPO will close on October 22, 2020. Let me tell you, Equitas Small Finance Bank is a subsidiary of Equitas Holdings.

 

Equitas Small Finance Bank IPO Details

 

IPO Open date	October 22, 2020
IPO Close Date	October 20, 2020
Issue Type	Book Built Issue IPO
Issue Size	Equity Shares of 10 Rupee (aggregating up to 517.60 Cr Rupee)
Fresh Issue	Equity Shares of 10 (aggregating up to 280.00 Cr Rupee)
Offer for Sale	72,000,000 Equity Shares of 10 Rupee (aggregating up to 237.60 Cr Rupee)
Face Value	10 rupee per equity share
IPO Price	32 to 33 rupee per equity share
Retail Discount	0 rupee
Employee Discount	0 rupee
Market Lot size	450 Shares
A Minimum Order Quantity	450 Shares
Listing on	BSE, NSE

 

 

The company was formed in 1993, with Chennai-based Equitas Small Finance Bank Limited (ESFBL) as the second-largest small finance bank in view of banking outlets and assets under management and total deposits. It has a diversified debt portfolio and less reliance on the microfinance business as compared to other microfinance companies. It is the largest distribution channel among Small Finance Banks (SFBs), including 853 banking outlets and 322 ATMs in India across 15 states and union territories.

 

Equitas Small Finance Bank offers microfinance loans promoting financial inclusion, home loans, vehicle loans and MSE loans. Equitas Small Fin Bank provides financial products to customers according to their income profile, type of security available and nature of business. Apart from this, the bank also offers the facility of issuing savings accounts, current accounts, salary accounts other deposit accounts, ATM-cum-debit cards, mutual fund products, third party insurance, and FASTags.

 

Company Financials

 

Description	For the year ended (in crore)
	30-Jun-20	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	20892.14	19314.55	15762.70	13301.16
Total Revenue	750.97	2927.80	2394.90	1772.90
Profit After-Tax	57.68	243.64	210.57	31.9

 

 

The company will issue a total of 15.2 million shares in the IPO. It will issue 8 crore fresh shares. In addition, 7.2 crore shares will be offered for sale. In this IPO, shares worth Rs 1 crore will be reserved for the employees of the bank and shares of Rs 51 crore for the shareholders of Equitas Holdings.

 

The company has appointed JM Financial, Edelweiss Financial Services and IIFL Securities as lead managers for the IPO of Equitas Small Finance Bank. According to a report, Equitas Small Finance Bank is the largest small finance bank in the country in terms of the bank branch numbers. 

 

Equitas Small Finance Bank IPO Timetable

 

Bid/Offer Opens On	October 20, 2020
Bid/Offer Closes On	October 22, 2020
Finalization of Basis of Allotment	October 27, 2020
Initiation of Refunds	October 28, 2020
A Credit of Shares to Demat Acct	October 29, 2020
IPO Shares Listing Date	November 2, 2020