Equitas Holdings, which had raised Rs 2,200 crore through its initial public offer (IPO), will make its stock market debut on Thursday (April 21). The IPO, which opened from April 5-7, was subscribed 17.24 times at a price band of Rs 109-110 per share.
Proceeds of the IPO will be used to fund business expansion plans, to meet working capital requirements and to repay loan and for other general corporate purposes.
Read More: Equitas Holdings makes strong debut on BSE and NSE
The company is a leading player in microfinance segment with approx 5.5 per cent market share. It also operates in pre-owned vehicle, MSE and affordable housing segments. Converting a Small Finance Banks (SFB), which give the company access to low-cost funds coupled with wider cross-selling opportunities.
The company has three wholly-owned subsidiaries Equitas Micro Finance (EMFL), Equitas Finance (EFL) and Equitas Housing Finance (EHFL). EMFL is the fifth largest microfinance company in India in terms of loans at Rs 2,935 crore (53 per cent of total loans). The consolidated AUM of EHL has grown at a strong pace of 50 per cent CAGR in FY11-15 to Rs 4,010 crore, increasing to Rs 5,505 crore as on 9MFY16. NIM was at 11.6 per cent as on 9MFY16 while profit after tax was at Rs 120 crore.