ESAF SFB looking for investors before launching IPO:
The ESAF SFB looking for big investors before launching its IPO in the markets by the next financial year Q1. In Jan, the Kerala- based financial bank already submitted its draft prospectus with SEBI.
The company plans to raise over Rs 300 cr through pre-IPO placements. Still, the IPO doesn’t receive any approvals from the market regulator. K Paul Thomas, MD & CEO of ESAF SFB said, some of the investors interested to invest in the long prospectus.
If the financial bank receives wealthy pre-IPO funding, then the amount will be reduced from the IPO size. Depending upon the market trade after the subscription period, the ESAF Bank promoter’s shareholdings reduced from 15% to 20%.
The microfinance started to obtain the one of the options, it plans to launch. The microfinance lender holds around 96% in bank advances. The company also expand its business in housing, auto, and agriculture loans. The bank wants to launch these businesses with vertical growth.
Presently, 78% of the bank holded by Thomas and remaining promoters from the entire stake. By March 2020, the bank needs to decline the promoter’s stake to 40% as per the RBI norms.
The bank expects more response from the fundraising of SFBs such as USF and AU SFB. The SFB has accepted by the market regulator SEBI, recently, RBI started on-tap licensing for SFBs.