ESAF Small Finance Bank IPO ends with stellar subscription

Published on Nov 08, 2023 12:01

The initial public offer (IPO) of ESAF Small Finance Bank received bids for 4,22,30,07,500 shares as against 5,77,28,408 shares on offer. The issue was subscribed 73.15 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 173.52 times. The Non Institutional Investors (NIIs) category was subscribed 84.37 times. The Retail Individual Investors (RIIs) category was subscribed 16.97 times.

The issue opened for bidding on 3 October 2023 and it closed on 7 November 2023. The price band of the IPO was fixed at Rs 57-60 per share.

The IPO comprised fresh issue of equity shares worth upto Rs 390.7 crore and an offer for sale of upto Rs 72.3 crore.

Among the promoters, ESAF Financial Holdings proposed to raise Rs 49.26 crore in OFS. Among the selling shareholders, PNB MetLife raised Rs 12.67 crore and Bajaj Allianz Life Rs 10.37 crore. The promoter and promoter group shareholding would decline to 63.4% post IPO from 74.4% pre-IPO.

The bank proposed to utilize the net proceeds from the offer towards augmenting banks tier I capital base to meet future capital requirements.

Ahead of the IPO, ESAF Small Finance Bank on Thursday, 2 November 2023 raised Rs 135.14 crore from anchor investors. The board allotted 2.25 crore shares at Rs 60 each to 14 anchor investors.

ESAF Small Finance Bank incorporated in 2016 is a small finance bank (SFB) promoted by ESAF Financial Holdings. On the advances side, the bank offers micro loans, retail loans, MSME loans; loans to financial institutions; and agricultural loans.

The bank has a wide network of 700 banking outlets, 767 customer service centers, 22 business correspondents, 2,116 banking agents, 525 business facilitators and 559 ATMs spread across 21 states and two union territories, serving 7.15 million customers as of 30 June 2023.

The bank reported a net profit of Rs 129.96 crore and net total income of Rs 678.48 crore for the three months ended on 30 June 2023.