One of the leading small finance banks in India, ESAF Small Finance Bank Limited, is all set to launch its IPO for subscription in November this year. As per the latest information available, the price band for the ESAF Small Finance Bank IPO has been fixed at the range of Rs 57 to Rs 64 per equity share with a face value of Rs 10. While the IPO will open for subscription on November 3, it will close on November 7. Prior to that, the allocation to anchor investors for the public issue is said to be unveiled on November 2.
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ESAF Small Finance Bank IPO: Details
Speaking in detail about the upcoming ESAF Small Finance Bank IPO, the small finance bank will be aiming to raise Rs 463 crores in its maiden public offering at the upper end of the price band. The offering will comprise issues of fresh shares valued at Rs 390.7 crore and an offer-for-sales for Rs 72.3 crores by the existing shareholders.
While the promoter, ESAF Financial Holding will sell shares worth Rs 49.26 crore, its investors including PNB MetLife India Insurance Company and Bajaj Alliance Life Insurance Company will sell shares worth Rs 12.67 crore and Rs 10.37 crore shares, respectively.
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The issue includes a reservation of Rs 12.5 crore worth of shares for the bank’s employees, who will get those shares at a discount of Rs 5 each on the final issue price.
The public issue includes a reservation of Rs 12.5 crore worth of shares for the bank’s employees, who will be eligible to get the share at a discount of Rs 5 each on the final issue price. However, the issue excludes employee reservations. While half of the net issue has been reserved for qualified institutional buyers, 15 per cent has been reserved for non-institutional investors and the remaining 35 per cent has been reserved for retail investors.
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Notably, the bank proposes to use the net proceeds from its upcoming issue to augment its Tier–I capital base and fulfill future capital requirements.
The basis of the IPO share allotment will be finalised by the ESAF by November 10, while the equity shares will be credited to the demat accounts by November 15. Further, the shares will be available for trading on the stock exchanges, starting from November 16.
In the meantime, the leading managers overseeing the issue include ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management.
