The initial public offer (IPO) of Equitas Small Finance Bank was subscribed 1.94 times on October 22, the final day of bidding. The IPO which aims to collect Rs 518 crore received bids for 22.57 crore equity shares against offer size of 11.58 crore equity shares, subscription data on exchanges showed. The lender had raised Rs 140 crore from anchor investors on October 19.
The portion allocated for qualified institutional investors was subscribed 3.9 times, and that of non-institutional investors 22 percent and retail investors 2.08 times.
Portion of shares reserved for its employees and promoter Equitas Holdings' shareholders was subscribed 1.84 times and 41 percent, respectively. The offer included a reservation of up to Rs 1 crore worth of shares for eligible employees of Equitas Small Finance Bank and Rs 51 crore of shares for Equitas Holdings' shareholders.
This is the third public issue in small finance bank segment after AU Small Finance Bank and Ujjivan Small Finance Bank.
The IPO of Equitas Small Finance Bank (ESFB) opened on October 20. The share sale of the Chennai-based lender comprised fresh issue of Rs 280 crore (8.5 crore equity shares) and an offer for sale of 7.2 crore equity shares, taking the total issue size to Rs 517.6 crore. Bids could be made for a minimum of 450 equity shares and in multiples of 450 equity shares thereafter, extending up to 13 lots.
Price band for the IPO was fixed at Rs 32-Rs 33 per equity share. Its shares will be listed on the BSE and NSE on November 2, 2020. The share allocation in the IPO is likely to get finalised on October 27.
Equitas Small Finance Bank (SFB) plans to use the IPO proceeds to augment its Tier I capital base to meet future capital requirements. Company promoter Equitas Holdings holds 95.49% stake in Equitas Small Finance Bank, which post the IPO will decline to about 82%, as per the additional information in its DRHP filed with the market regulator.