ESAF Small Finance Bank to Launch IPO on November 3

ESAF Small Finance Bank to Launch IPO on November 3

ESAF Small Finance Bank to Launch IPO on November 3

ESAF Small Finance Bank, a Kerala-based lender, is set to initiate its initial public offering (IPO) on November 3, with the IPO scheduled to conclude on November 7. The company intends to raise ₹463 crore through the IPO, although the price band has not yet been announced.

The IPO will consist of a fresh issue of equity shares valued at ₹390.7 crore by the company, as well as an offer-for-sale (OFS) of equity shares worth ₹72.3 crore by three shareholders. In the OFS, promoter ESAF Financial Holdings will sell ₹49.26 crore worth of shares, while PNB MetLife India Insurance Company and Bajaj Allianz Life Insurance Company will offload shares worth ₹23.04 crore.

The basis of allotment for IPO shares will be determined on November 10, and eligible investors can expect shares to be credited to their demat accounts on November 15. The shares of ESAF Small Finance Bank are anticipated to be listed on both BSE and NSE on November 16.

The IPO has allocated about 50% of the issue for qualified institutional buyers (QIB), 15% for non-institutional investors, and 35% for retail investors. Additionally, the bank has reserved equity shares worth up to ₹12.5 crore for its employees in the IPO.

ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management are the book-running lead managers for the IPO, with Link Intime India serving as the IPO registrar. The bank intends to utilize the net proceeds from the fresh issue to enhance its Tier-I capital base to meet future capital requirements.

ESAF Small Finance Bank initially filed its draft IPO papers with SEBI in July, receiving approval from the regulator on October 17.

About ESAF Small Finance Bank

As of March 31, 2023, ESAF Small Finance Bank maintains a network of 700 banking outlets and 767 customer service centers. The bank’s net profit for FY23 increased from ₹54.73 crore in FY22 to ₹302.3 crore. FY23 also saw the bank’s net interest income (NII) rise by 60% YoY to ₹1,836.3 crore.

ESAF Small Finance Bank has demonstrated impressive growth with its assets under management (AUM) expanding from ₹8,425.93 crore in March 31, 2021, to ₹16,331.26 crore in March 31, 2023, representing a CAGR of 39.22%, the highest CAGR among its peers. The bank’s deposits also grew from ₹8,999.42 crore in March 2021 to ₹14,665.62 crore in March 2023, registering a CAGR of 27.66%.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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