Fincare Small Finance Bank has filed draft papers for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). It plans to raise Rs 1,330 crore from the primary market.
The IPO of Bengaluru-based microfinance company comprises a fresh issue of Rs 330 crore by the bank and an offer for sale of Rs 1,000 crore by promoter Fincare Business Services.
The company started banking operations in July 2017. Fincare Small Finance Bank has a suite of banking products such as savings accounts, current accounts, fixed deposits, NRI fixed deposits, recurring deposits, microloans, cash overdraft, loans against gold, loan against property, institutional finance, and two-wheeler loan.
"Among comparable small finance bank peers in India, the bank had the highest growth rate in advances over FY18 to FY20. Its gross loan portfolio (GLP) grew from Rs 2,154.37 crore to Rs 5,547.58 crore, registering a CAGR of 41.05 percent, from March 2018 to December 2020," CRISIL said.
According to the draft paper, the bank had the best adjusted ROA and ROE (adjusted for COVID-19 provisions) among SFBs and, for the nine months ended December 31, 2020, and FY2020, it was one of India's most profitable SFBs, based on ROE and ROA in FY20.
The global coordinators and book running lead managers to the issue are ICICI Securities, Axis Capital, IIFL Securities, and SBI Capital Markets.
Recently, Motilal Oswal Private Equity also picked up a minority stake in the bank through its India Business Excellence Fund III, to the tune of Rs 185 crore.