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Equitas Small Finance Bank IPO opens on Oct 20: All you need to know

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 IPO opens on Oct 20: All you need to know

Applicants can bid for a minimum one lot of 450 equity shares and in multiples of 450 equity shares, extending up to 13 lots

The Rs 517.6 crore initial public offer (IPO) of Equitas Small Finance Bank (ESFB) will open from Tuesday, October 20 till October 22. The IPO consists of a fresh issue of Rs 280 crore (8.5 crore equity shares) and an offer for sale of 7.2 crore equity shares, taking the total issue size to Rs 517.6 crore.

As per the additional information in its DRHP filed with the market regulator, promoter Equitas Holdings held 95.49% stake in Equitas Small Finance Bank. Post the IPO, Equitas Holdings's stale will decline to about 82%.

Merchant bankers have fixed the price band at Rs 32-Rs 33 per equity share and shares will be listed on the benchmark indices on November 2, 2020.

Applicants can bid for a minimum one lot of 450 equity shares and in multiples of 450 equity shares, extending up to 13 lots.

Equitas Small Finance Bank (SFB) said in its DHRP that it plans to use the IPO proceeds to augment its Tier I capital base to meet future capital requirements.

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.

Eligible shareholders mean those individuals and HUFs who are the public equity shareholders of EHL (excluding such persons who are not eligible to invest in the offer under applicable laws or are otherwise unable to make any such investment) as on the date of the red herring prospectus i.e. October 11, 2020, the company's filing said.

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

Equitas Small Finance Bank (ESFB) had filed the draft red herring prospectus (DRHP) on December 16, 2019. The issue was earlier scheduled for subscription by the end of March. However,  it was put on hold due to the spread of COVID-19 pandemic.

Incorporated in Chennai in 1993, Equitas SFB is 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, as per CRISIL report. The fresh issue of equity shares for its proposed IPO was revised recently downward to Rs 280 crore from Rs 550 crore planned earlier.

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