Small finance bank (SFB) licensee, Equitas Holdings was bid for 0.37 times on day two of its initial public offering (IPO). The total number of shares on sale were 139 million, out of which the investors subscribed to 52.6 million shares.
The qualified institutional buyers (QIB) portion was bid for 0.26 times as 10.3 million shares out of the 39.8 million shares reserved for their category were subscribed for. High net-worth individuals bid for 1 million shares out of the 29.7 million shares reserved or 3% of their total quota, while retail investors bid for 41.1 million shares out of the 69.3 million shares reserved for their category, bidding nearly 0.59 times.
The employees category subscribed for 39,825 shares out of the 2.5 lakh shares reserved for their category on offer.
The IPO, the first in the current financial year, is priced in the range of Rs 109-Rs 110, and will be closes on Thursday. The company would be raising `720 crore via the issue of fresh shares, while several of its existing investors are also using the opportunity by making an offer for sale (OFS) of nearly 13.24 crore shares.
In its allotment to anchor investors on Monday, the company raised `Rs 653 crore through 16 anchor investors at a price of Rs 110 a piece. The anchor investors who bid for the issue include– Franklin Templeton, Birla Sun Life, ICICI Prudential and SBI Mutual Funds.
The first of all small finance banks to be taking the IPO route, the company aims to use the proceeds of the issue for augmenting its capital base and for general corporate purposes.
The management also announced that three of its holding companies including its microfinance, housing and MSME arms would be merged before the company starts its SFB operations. The book running lead managers for the issue are Axis Capital, Edelweiss Financial Services, HSBC Securities and Capital Markets and ICICI Securities.