Mumbai: Equitas Small Finance Bank will debut on Tuesday, October 20 for three trading sessions.
The bids for subscribing to the IPO concludes on October 22, 2020. The listing is expected in first week of November, while allotment process gets completed by Oct 27.
Equitas SFB on Thursday formally announced the details of the offering in a note.
Here are five important take-aways for investors keen to participate:
1. Price: The price band has been fixed at Rs 32 to Rs 33 per equity share of face value of Rs 10 each. Bids can be made for a minimum of 450 Equity Shares and in multiples of 450 Equity Shares thereafter.
2. What is the IPO for?
Equitas is raising the IPO to meet capital requirements, improve Tier-1 capital base, precisely.
The IPO would comprise of fresh issue of up to Rs. 2,800 million (""Fresh Issue"") and an offer for sale (OFS) of up to 72,000,000 equity Shares by Equitas Holdings Limited (EHL - Promoter Selling Shareholder). The Offer includes reservation aggregating up to Rs. 510 million, for subscription by Eligible EHL Shareholders and a reservation aggregating up to Rs. 10 million, for subscription by Eligible Employees.
3. Reservations: Retail investors, QIBs, Employees, and existing shareholders can participate in the IPO. For retail investors, the reservation is fixed at a minimum of 35 percent. For existing shareholders, the reservation is lower than ten percent while for employees the allotment is subject to minimum bid lots and not exceeding Rs 200,000. This can be exceeded to Rs 500,000 in the likelihood of under-subscription.
4. For QIBs: The reservation for Qualified Institutional Buyers is not less than 50 percent. The company said, not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Portion") provided that our Bank and the Promoter Selling Shareholder may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations ("Anchor Investor Portion"), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of undersubscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.
5. The Managers: The Shares are expected to be listed on both BSE and NSE. NSE is the designated stock exchange. JM Financial Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the book running lead managers to the Offer. ("BRLMs").
Chennai headquartered Equitas Small Finance Bank established in 1993 is the largest SFB in India in terms of number of banking outlets, and second largest SFB in India in terms of assets under management and total deposits in Fiscal 2019 (Source: CRISIL Report).
It posted a revenue of Rs 7,50.96 crores for quarter ending June 2020 at a Profit after tax of Rs 57.67 crores.