Equitas Small Finance Bank’s initial public offering (IPO) of Rs 517.6 crore opens for subscription on October 20. The IPO will remain open until October 22. Following the IPO, the stake of Equitas Holdings Limited, the holding company of Equitas Small Finance Bank, will decline to around 82%. The shares will likely be listed on the BSE and NSE on November 2, 2020.
Equitas Small Finance Bank has set the price range for selling shares at Rs 32- Rs 33 per share. Applicants may bid for a minimum of one lot of 450 Participation Shares and in multiples of 450 Participation Shares thereafter, up to 13 lots.
The bank will use the proceeds of the IPO to increase its Tier I capital base to meet future capital requirements.
Equitas Small Finance Bank is a microfinance institution incorporated in Chennai in 1993. It provides microfinance loans, housing finance and vehicles. But unlike other microfinance institutions, it also offers savings accounts, mutual fund products, and liability insurance.
As of fiscal 2019, Equitas Small Finance Bank was the largest small financial bank in India in terms of number of outlets and the second in India in terms of assets under management.
1Edelweiss Financial Services, IFL Holdings and JM Financial Consultants are the main managers of the initial public offering, while KFintech Private Limited is the registrar of the issue.