Equitas SFB IPO plans
On Dec 16, Equitas SFB IPO plans a subsidiary of Equitas Holdings registered to the draft red herring prospectus with the Securities and Exchange Board of India (SEBI).
This IPO compromises a fresh issue combining up to Rs 550 crore. Also, it aspires to offer for a sale up to eight crore equity shares by Equitas Holdings.
This offer includes a reservation of up to Rs 100 crores. It came about with subscriptions eligible by shareholders of Equitas Holdings. The release says that it provides a combined reservation up to Rs 5 crores for subscription by eligible employees.
Equitas Small Finance Bank considered the largest SFB in India. In terms of the number of banking outlets, it stands first. Also, the second largest in terms of assets under management and total deposits in fiscal 2019. The bank provides housing finance since 2011 through EHFL. Also, it provides vehicle finance and MSE finance through NBFC. It received its asset finance license in 2012, primarily to economically disadvantaged households.
The company considers JM Financial, Edelweiss Financial Services, and IIFL Securities as lead managers to the issue. It plans to list the equity shares on the BSE and NSE.
Moreover, shares of Equitas holdings closed at Rs 103.50 on the BSE, increased by Rs 1.90% today.
In the small finance bank space, Ujjivan Small Finance Bank stands the first to list on the stocks on Dec 12. Besides, it came up with a super premium of 56% over the issue price of Rs 37. The bank raised Rs 750 crores through the public issue on Dec 2-4.