Equitas Small Finance Bank received SEBI approval:
On 3rd March, the Equitas Small Finance Bank received approvals to enter into the public through its IPO from SEBI. Moreover, the Company having Rs 550 cr worth of fresh issue. Also, the IPO offered around 8 crore eq shares for sales from EHL and promoter as per the draft papers.
On 16th Dec 2019, the Equitas SFB, owned by the Equitas Holdings submitted draft papers with the SEBI. The IPO reserved around Rs 100 cr of subscriptions for the qualified EHL shareholders. Also, reserved around Rs 5 cr for its eligible employees.
The bank plans to utilize its raised amount for primary loans and future capital requirements. It mainly concentrated on its rural and semi-urban franchises to raise deposits from non-resident Indians. The bank plans to raise Rs 300 cr through its pre-IPO placement.
The Equitas SFB was one of the largest small finance banks in our country as on baking outlets. The bank expanded it’s 403 branches and 38 ultra-small banks to 16 states in India with 3.73 million customers.
Furthermore, in the Sep quarter, the net profit of the bank raised to Rs 92.44 cr as compared to Rs 24.06 cr in the last year’s current period. Similarly, the interest earned raised from Rs 472.25 cr to Rs 660.68 cr in the Sep quarter 2019.
The Axis Capital, Edelweiss Finance Services, ICICI Securities, and IIFL Securities will manage this IPO. The Equitas SFb share will be traded on both the Bombay Stock Exchange and National Stock Exchange.