Equitas Holdings IPO fully subscribed

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Mumbai | Published: April 8, 2016 6:08:04 AM

The initial public offering (IPO) of small finance bank (SFB) licencee, Equitas Holdings met with an overwhelming response on Thursday and was subscribed 17.2 times.

The initial public offering (IPO) of small finance bank (SFB) licencee, Equitas Holdings met with an overwhelming response on Thursday and was subscribed 17.2 times.

While the total number of shares on offer was 13.9 crore, bids were received for 238.6 crore shares. The company has already allotted 5.98 crore shares to anchor investors at Rs 110 apiece.

Large investors appear to be betting big on the lender given the qualified institutional buyers (QIB) quota was subscribed a hefty 14.9 times. Individual investors too appear to be keen to back the financial services player; high net-worth individuals bid for 170.3 crore shares against the 2.97 crore shares reserved for them, while retail investors bid for 8.75 crore shares against the 6.93 crore shares allotted to their category.

Employees were less enthusiastic, however, and subscribed to 0.016 crore shares against 0.025 crore reserved for them.

The IPO which has been priced in the range of R109-R110 values the lender at a multiple of 18.6 times on annualised FY16 earnings. However, the valuation will change meaningfully post the issue since the number of outstanding shares will go up sharply by 19.9 crore shares from the current 26.9 crore shares.

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