InvestorQ : When is the Equitas SFB IPO opening and what are the details to apply for the IPO?
diksha shah made post

When is the Equitas SFB IPO opening and what are the details to apply for the IPO?

Rashi Mehra answered.
7 months ago

Equitas Small Finance Bank or SFB is coming out with an IPO to enhance its capital to prepare for an expansion of its loan asset book. The company is a wholly owned subsidiary of Equitas Ltd, a company specializing in microfinance.

The Equitas SFB IPO will be worth Rs.517 crore. The IPO opens for subscription on 20 October and will close after 3 days on 22 October. The overall issue comprises of a fresh issue of 8.5 crore shares and offer for sale of 7.2 crore shares by parent, Equitas Holdings.

Once the new issue and the OFS is completed, the holding stake of Equitas in Equitas SFB will stand reduced to 82%. As per RBI guidelines, all microfinance institutions are required to hive off part of their stake in their SFB subsidiaries for public holding over time.

The issue price for the Equitas SFB IPO has been fixed in the floor price range of Rs.32-33 and the price will be discovered through the process of book building. The retail applicants, defined by SEBI as an outer investment limit of Rs.2 lakhs, can bid for a minimum lot of 450 shares and in multiples thereof up to 13 lots.

Equitas SFB proposes to use the proceeds of the new offer to augment its Tier-1 Capital, while the OFS will only result in ownership change. Equitas SFB is the largest small finance bank in India in terms of number of banking outlets and second largest in terms of AUM.