Equitas SFB looks to raise Rs 517.6 crore through IPO

By: |
October 16, 2020 8:44 AM

The offer will open for subscription on October 20 and close on October 22.

RBI had restricted ESFB from opening new branches and froze the remuneration of MD&CEO at the then existing level.

Equitas Small Finance Bank has fixed the price band for its forthcoming initial public offering (IPO) at `32-33 per share. At the upper end of the price band, the issue size stands at Rs 517.6 crore.

The offer will open for subscription on October 20 and close on October 22. The issue for anchor investors will open on October 19, a day before the issue opening for public. The lender wants to apply for converting itself into universal bank in the long run.

PN Vasudevan, managing director (MD) and chief executive officer (CEO), said, “We will apply for converting into a universal bank after completing five years of operation.” The RBI had issued a licence to Equitas Small Finance Bank in September 2016. As per regulatory norms, a small finance bank can apply to become a full-fledged bank after completing five years of operation.

The net proceeds from the offer will be utilised for augmentation of bank’s tier I capital base. The capital adequacy ratio of the bank stood at 22.02% at the end of June 2020. Bids can be made for a minimum of 450 equity shares and in multiples of 450 thereafter. JM Financial, Edelweiss Financial Services and IIFL Securities are the book running lead managers to the offer.

The lender reported a net profit of Rs 57.6 crore for the June quarter, compared with Rs 57-crore profit in the same period last year. The net interest income of the lender stood at `404.2 crore at the end of June quarter.

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