Equitas Small Finance Bank IPO is all set to make a debut in the stock market with an issue size of 517.6 Cr.
Equitas Small Finance IPO– Overview
| Equitas Small Finance IPO Issue Date | 20-22 October 2020 |
| Equitas Small Finance IPO Opening Date | 20 Oct 2020 |
| Equitas Small Finance IPO Face Value | INR 10 per share |
| Equitas Small Finance IPO Price | INR 33 per share |
| Equitas Small Finance IPO Lot Size | 450 Shares |
| Issue Size | 517.60 Cr |
| Offer for sale | 237.60 Cr |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE. |
| QIB Shares Offered | 3.91 times |
| NII (HNI) Shares | 0.22 times |
| Company Promoters | Equitas Holdings Limited is the promoter of the company. |
IPO Tentative Dates
| EQUITAS SMALL FINANCE BANK IPO opening date | 20 Oct 2020 |
| EQUITAS SMALL FINANCE BANK IPO closing date | 22 Oct 2020 |
| Basis of Allotment | 27 Oct 2020 |
| Initiation of Refunds | 28 Oct 2020 |
| The credit of Shares to Demat | 29 Oct 2020 |
| EQUITAS SMALL FINANCE BANK IPO Listing Date | 02 Nov 2020 |
Industry Overview.
The microfinance industry has recorded healthy growth in the past few years, and the industry’s Gross Loan Portfolio (GLP) grew at a CAGR of 24% since Fiscal 2016. The industry has grown at a CAGR of 39% since Fiscal 2007, despite adverse developments in the past decade such as national farm loan waivers (2008), the Andhra Pradesh crisis (2010), Andhra Pradesh farm loan waiver (2014), SFB licenses issued to eight MFIs (in-principle approval in 2015), demonetization (2016), and farm loan waiver across some more states (in 2017 and 2018).
Company Overview
Chennai based Equitas Small Finance Bank Ltd (ESFBL) was the largest small finance bank in India in Fiscal 2019 considering banking outlets and the 2nd largest small finance bank considering assets under management and total deposits. Unlike other microfinance companies, it has a diversified loan portfolio and less dependence on microfinance business. With the focus on financially unserved and underserved customers, the bank offers a wide range of banking products and services.
The company provides microfinance loans promoting financial inclusion, housing finance, vehicle finance, and MSE finance. Equitas Small Fin Bank offers financial products according to customers’ income profile, type of security available and nature of business.
Objectives Of The Issue
- The bank proposes to utilize the Net Proceeds from the fresh issue offer towards augmenting the Bank’s Tier I capital base to meet the future capital requirement.
Financial Statements
| Particulars | 30-Sept-20 | 31-Mar-20 | 31-Mar-19 |
| Total Assets | 208,921.39 | 193,145.47 | 157,626.91 |
| Total Revenue | 7,509.68 | 29,277.95 | 23,948.32 |
| Profit After Tax | 576.71 | 2,436.35 | 2,105.66 |
Strengths
- A customer-centric organization with a focus on unserved and underserved segment
- A well-diversified asset portfolio as SFB
- Strong retail liability portfolio
- Credit assessment procedures.
Company Contact Information
Equitas Small Finance Bank Ltd
4th Floor, Phase II, Spencer Plaza, No. 769,
Mount Road, Anna Salai, Chennai 600 002,
Tamil Nadu, India
Phone: +91 44 4299 5000
Email: secretarial@equitas.in
Website: https://www.equitasbank.com/
IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/
