India: Equitas Small Finance Bank aims to raise $70m via IPO in October

Photo: Reuters

Equitas Small Finance Bank Limited has fixed a price band of ₹32-33 per equity share for its initial public offering (IPO). The three-day share sale which will open for subscription during 20-22 October aims to raise ₹517.6 crore at the upper end of the price band.

The IPO comprises a fresh issue aggregating up to ₹280 crore and an offer for sale of up to 72,000,000 equity shares by Equitas Holdings Limited. Bids can be made for a minimum of 450 equity shares and in multiples of 450 thereafter.

Equitas Small Finance Bank has sought in- principle approval from the Reserve Bank of India to undertake a merger of its promoter Equitas Holdings Limited with self, such that the merger would be effective from 4 September, 2021. It has also sought in-principle approval for dilution of EHL’s shareholding in the bank pursuant to such merger.

Objective of the offer is to be listed on both the BSE Limited and the National Stock Exchange of India Limited (NSE).

JM Financial Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the book running lead managers to the offer.

Equitas Small Finance Bank is the largest small finance bank in India in terms of number of banking outlets, and the second largest in India in terms of assets under management and total deposits in financial year 2019. Products include small business loans, housing loans, and agriculture loans, vehicle loans, MSE loan etc. On the liability side, they offer current accounts, salary accounts, savings accounts, and a variety of deposit accounts to their clients. In addition, it also provides non-credit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTags.

Its gross advances was at ₹15,572.91 crore as of 30 June 30, of which secured advances constituted 75.75% by the quarter. Their deposits grew at a CAGR of 38.75% from ₹5,603.97 crore as of March 2018 to ₹10,788.41 crore as of 31 March, 2020.

This article was first published on livemint.com

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.