Equitas Small Finance Bank IPO Review, GMP, Share Price & Details, Allotment

Equitas Small Finance Bank IPO Review, GMP, Share Price & Details, Allotment :- Equitas Small Finance Bank, a subsidiary of Equitas Holdings, has filed a draft prospectus with the Securities and Exchange Board of India (SEBI) to float an initial public offering(IPO), in a bid to raise Rs 1,000 crore on December 16, 2019.

Equitas Small Finance Bank IPO Review

The IPO will include a fresh issue cumulative up to Rs 550 crore and an offer for sale of up to eight crore equity shares by Equitas Holdings.

The official release said that the offer comprises of a reservation of up to Rs 100 crore, for subscription by eligible shareholders of Equitas Holdings and a reservation cumilative up to Rs 5 crore for subscription by eligible employees.

According to the sources, the bank expects to raise around Rs 1,000 crore through the issue. Equitas SFB has made a proposal to utilise the net proceeds from the offer towards expanding its Tier I capital base to catch-up the future capital requirements.

Equitas Small Finance Bank IPO GMP Share Price & Details

Equitas Small Finance Bankis the India’s largest SFB in terms of the number of banking outlets. It is India’s second-largest lender as per the assets under management and total deposits in fiscal 2019.

The lender provides a series of banking products and services to customers with an emphasis on serving the financially underserved customer segments in India.

It has been providing housing finance through EHFL since 2011. The company has also been providing vehicle finance and MSE finance, primarily to economically disadvantaged households, through the erstwhile NBFC that received its asset finance license in 2012.

Equitas Small Finance Bank IPO Allotment

The book running lead managers to the issue are JM Financial, Edelweiss Financial Services and IIFL Securities. The company plans to list the equity shares on the BSE and NSE. Shares of Equitas Holdings closed at Rs 103.50 on the BSE, up Rs 1.90, or 1.87 percent today.

With a bumper premium of 56 percent over the issue price of Rs 37, Ujjivan Small Finance Bank was the first to list on the bourses on December 12, in the small finance bank space who raised Rs 750 crore through the public issue on December 2-4, 2019.