Equitas Small Finance Bank owns Rs. The initial public offer (IPO) of Rs 517.6 crore opens for membership on 20 October. The IPO will be open till 22 October. The IPO consists of fresh issue of 8.5 crore shares and the sale of 7.2 crore shares has been offered by Equity Holdings. Post the IPO, Equities Small Finance Bank’s holding company Equitas Holdings Ltd’s stake will come down to around 82 per cent. The shares are likely to be listed on BSE and NSE on November 2, 2020.
Equitas Small Finance Bank has fixed the price band of the share sale at Rs 32- 33 per share. Applicants can bid for a minimum of one lot of 450 equity shares and then 13 lots in multiples of 450 equity shares.
The bank will use IPO proceeds to expand its Tier I capital base to meet future capital requirements.
Equitas Small Finance Bank is a micro-finance institution incorporated in Chennai in 1993. It provides microfinance loans, housing finance and vehicle finance. But unlike other micro-finance institutions, it also offers savings accounts, mutual fund products and third-party insurance.
As of FY 2019, Equitas Small Finance Bank was the largest small finance bank in India in terms of number of banking outlets and the second largest bank in India in terms of assets under management.
1Edelweiss Financial Services, IFL Holdings and JM Financial Consultants are the lead managers of the initial public offer, while KFintech Private Limited is the registrar of the issue.