Unlisted shares of ESAF Small Finance Bank are trading at Rs 81 in the grey market, which is about 35 per cent higher than its upper issue price of Rs 60 per share
ESAF Small Finance Bank IPO: The initial public offering (IPO) of ESAF Small Finance Bank, which was opened for public subscription between November 3 and November 7, received a whopping 73.15 times subscription on the last day of subscription on Tuesday. The Rs 463-crore IPO received bids for 4,22,28,99,750 shares against 5,77,28,408 shares on offer.
The portion for qualified institutional buyers (QIBs) received 173.52 times subscription, while the quota for non-institutional investors got subscribed 84.37 times. The retail individual investors part received 16.97 times subscription.
The IPO allotment will take place on November 10, while the company is likely to list on the BSE and NSE on November 16.
ESAF Small Finance Bank IPO GMP Today
According to market observers, unlisted shares of ESAF Small Finance Bank are currently Rs 21 higher in the grey market as compared to their issue price. The Rs 21 grey market premium or GMP is about 35 per cent higher than its upper issue price of Rs 60 per share. This means the grey market is expecting a 35 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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About ESAF Small Finance Bank IPO
The Rs 463-crore initial public offering (IPO) comprised a fresh equity issue of Rs 391 crore and an offer for sale (OFS) of Rs 72 crore. Those selling shares in the OFS are promoter – ESAF Financial Holdings Private Ltd and other shareholders – PNB MetLife India Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd.
Currently, ESAF Financial Holdings owns a 62.46 per cent stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life own 4.75 per cent and 3.89 per cent stake, respectively, in the lender.
ESAF Small Finance Bank said it collected Rs 135 crore from anchor investors.
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The proceeds of the fresh issue will be utilised to augment the bank’s Tier-1 capital base.
ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, yield on advances, net interest margin, assets under management, Compound Annual Growth Rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas and ratio of micro loan advances to gross advances. ICICI Securities, DAM Capital Advisors and Nuvama Wealth Management were the managers to the offer. The equity shares of the bank will be listed on the BSE and the NSE.
