Equitas Small Finance Bank Ltd IPO Detail

Equitas Small Finance Bank ltd

Incorporated in 1993, 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 main focus on financially unserved and underserved customers, the bank offers a wide range of banking products and services.

Objects of the Issue:

The bank utilize the Net Proceeds from the fresh issue offer towards augmenting the Bank’s Tier I capital base to meet the future capital requirement.

BUSINESS SEGMENTS:

Banking products and servicesThe company provides microfinance loans, housing finance, vehicle finance, and MSE finance.
The bank also provides current accounts, salary accounts, savings accounts, other deposit accounts, ATM-cum-debit cards, mutual fund products, third party insurance, and issuance of FASTags.

Equitas Small Finance Bank Ltd IPO Details Snapshot:

IPO Subscription DatesOct 20, 2020 – Oct 22, 2020
Price Band₹32 to ₹33 per equity share
Issue Size₹517.60 Cr
Fresh issue₹280.00 Cr
Offer For Sale (OFS)₹237.60 Cr
Minimum bid (lot size)450 Shares
Face Value ₹10 per equity share
Retail AllocationNot less than 35%
Listing AtNSE, BSE

IPO Tentative Date and Timetable:

Bid/Offer Open dateOct 20, 2020
Bid/Offer Close dateOct 22, 2020
Finalisation of Basis of AllotmentOct 27, 2020
Initiation of RefundsOct 28, 2020
Credit of Shares to Demat AccountOct 29, 2020
IPO Share Listing DateNov 2, 2020

IPO Lot Size and Price Detail :

Application LotsSharesAmount (Cut-off)
Minimum 1450₹14,850
Maximum 135850₹193,050

Company Promoters :

Equitas Holdings Limited is the promoter of the company.

Equitas Holdings (EHL) Shareholders Reservation in IPO

Investors who hold EHL shares on October 11, 2020, are eligible to apply under the shareholder’s category of Equitas Small Finance Bank IPO. The company reserved 10% of the offer for Shareholders (approximate ₹51 Cr). The EHL shareholders can apply up to ₹2 lakh in the Shareholders category. EHL shareholders can also apply under the retail category. Further, if an EHL shareholder is also an employee, he/she is also eligible to apply in all the three categories- RII (up to ₹2 lakhs), Shareholder (up to ₹2 lakhs) and Employees (up to ₹5 lakhs).

Equitas Holdings Employees Reservation in IPO

Full-time or permanent employees of EHL can apply in the SBI Employees category of Equitas Small Finance Bank IPO. The maximum limit defined to apply in the Employee category is ₹5 lakhs. The maximum allotment to employees cannot be above ₹2 lakhs when the category is fully or oversubscribed. In case of under-subscription in the employee category, the unsubscribed portion will be available for allocation, proportionately to all Eligible Employees who Bid above ₹2 lakhs, subject to a maximum limit not exceeding ₹5 lakhs.

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