ESAF Small Finance Bank on Monday filed draft papers with market regulator Sebi to launch a Rs 976-crore initial public offering (IPO). The IPO would comprise a fresh issue of shares worth Rs 800 crore and an offer-for-sale (OFS) aggregating up to Rs 176.2 crore, according to the draft prospectus.
The bank is likely to consider a pre-IPO placement of up to Rs 300 crore. If it is undertaken, the amount raised will be reduced from the fresh issue, the draft papers noted. The Thrissur-based bank will use proceeds from the fresh issue to raise the bank's tier-1 capital (primarily loans or advances and investment portfolio) to meet future capital requirements.
The public issue of shares is being managed by Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities. The lender operates in 16 states and 1 union territory through its 403 branches and 38 ultra-small branches, serving over 3.73 million customers.
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For the quarter ended September 2019, the bank 's net profit rose to Rs 92.44 crore compared to Rs 24.06 crore in the corresponding quarter of previous fiscal. Interest earned rose to Rs 660.68 crore for quarter ended September 2019 from Rs 472.25 crore in the corresponding quarter of previous fiscal.
The bank will continue to focus on its rural and semi urban franchisees and increase deposits across non-resident Indians, among others, according to the draft papers.
In December 2019, Equitas Small Finance Bank filed draft red herring prospectus (DRHP) with Sebi for Rs 1,000-crore initial public offer.
On December 12, Ujjivan Small Finance Bank made its share market debut. The share price of lender ended with a gain of 51 per cent on the listing day amid a surge in buying interest from investors after attracting bumper subscription of 166 times during initial public offering (IPO). The stock was listed at a premium of 56.75 per cent compared to the issue price of Rs 37 on the BSE.
By Aseem Thapliyal