Equitas Small Finance Bank initial public offer (IPO) made a listless listing on the bourses. The shares opened at Rs 31, lower by 6.06 per cent on the BSE and at Rs 31.10, lower by 5.76 per cent on the NSE as against the issue price of Rs 33 per share. At 10:30 am, the shares were trading at Rs 30.35, lower by 8 per cent on the BSE and at Rs 30.45, down 7.73 per cent on the NSE.
Equitas Small Finance Bank’s Rs 517.6 crore initial public offer (IPO) was open for subscription between October 20 and October 22. The IPO, sold in the price band of Rs 32- Rs 33 per share, had received a muted response from the investors. It was subscribed 2 times, receiving bids for 22.57 crore equity shares as against the offer size of 11.58 crore equity shares. The qualified institutional investors segment was subscribed 3.9 times, retail investors category was subscribed 2.08 times and non-institutional investors, 22 per cent.
The IPO had comprised fresh issue of 8.5 crore shares and offer for sale of 7.2 crore shares by Equitas Holdings Limited, the holding company of Equitas Small Finance Bank.
Equitas Small Finance Bank will use the IPO proceeds to augment its Tier I capital base so as to meet future capital requirements.
Equitas Small Finance Bank was incorporated in Chennai in the year 1993. As of financial year 2019, it was the largest small finance bank in the country in terms of banking outlets. As a micro-finance institution, Equitas Small Finance Bank provides microfinance loans, housing finance and vehicle finance. Besides, it handles savings accounts, mutual funds and third-party insurance products.
The lead managers of the public offering were Edelweiss Financial Services, IFL Holdings and JM Financial Consultants, while KFintech Private Limited was the registrar to the issue.
Equitas Small Finance Bank’s IPO is third public issue in the small finance bank space, following the likes of AU Small Finance Bank and Ujjivan Small Finance Bank.