Eqitas SFB is second largest small finance bank considering AUM and total deposits in FY19 as per CRISIL is looking to raise ~ ₹ 518 crores through capital markets.
Equitas Small Finance Bank Limited (Equitas SFB), Chennai based small finance bank (SFB) was initially established to provide micro-finance services to lower unserved and underserved customer segment in India. As per CRISIL, it is second largest small finance bank considering AUM and total deposits in FY19
It was originallly incorporated as a VAP Finance Private Limited on Jun'1993 and subsequently renamed as Equitas Finance Private Limited and then to Equitas Finance Limited. Promoters of the company is Equitas Holdings Ltd.(EHL). EHL was granted the RBI In-Principle and RBI Final Approval on October 7, 2015 and June 30, 2016 respectively; to establish a small finance bank (“SFB”). Subsequently, Equitas finance was converted into an SFB. Post receiving Banking approval, company is renamed to Equitas Small Finance Bank Limited.
Through this IPO, Equitas Small Finance Bank is looking to raise ₹ 517.6 Crores primarily for expansion of banking branches and general corporate purpose.
During FY19 it had a market share of 16% in terms of assets under management in India (Source: CRISIL Report). Gross Advances (including IBPC issued) have grown from ₹79,370.55 million as of March 31, 2018 to ₹ 117,028.49 million as of March 31, 2019 and was ₹153,669.37 million as of March 31, 2020, and ₹155,729.14 million as of June 30, 2020. Of this Gross Advances (including IBPC issued), secured advances constituted 66.33% as of March 31, 2018, 70.72% as of March 31, 2019, and increased to 75.39% as of March 31, 2020 and further increased to 75.75% as of June 30, 2020.
Promoters of Equitas Small Finance Bank are Equitas Holdings Ltd.
Equitas Small Finance Bank IPO issue would start for subscription on 20-Oct-20 till 22-Oct-20 with price band of ₹ 32 to ₹ 33 per share.
Equitas Small Finance Bank is providing following services:
- Small Business loans
- Loan against Property
- Housing Loans
- Agricultural Loans
- Used and new CV loans to drivers
- Microfinance to JLGs predominantly comprising women
- MSE loans to proprietorships
- Corporate loans
Key Pointers
- 856 banking branches spread across South/North/East region
- 252 business correspondents
- 17 states/UT's coverage
Key Management
| Arun Ramanathan | Chairman |
| Vasudevan PN | MD & CEO |
| Mr. Raghavan H K N | Senior President – Retail, Assets and Outreach Banking |
| Mr. Murali Vaidyanathan | President & Country Head – Branch Banking - Liabilities, Products & Wealth |
| N Sridharan | CFO |
| Sampathkumar KR | CS & Compliance Officer |
Equitas Small Finance Bank IPO Snapshot
| Issue Open | 20-Oct-2020 |
| Issue Close | 22-Oct-2020 |
| Face Value | ₹ 10/- |
| Price Band | ₹ 32 to ₹ 33 (Including premium of Rs 125 to Rs 135 per share) |
| Discount | Nil |
| Bid Lot | 450 shares and in mutiples |
| Listing on | BSE and NSE |
| Mode of Payment | UPI / ASBA (Mandatory); Applications using third party UPI/ASBA Bank accounts are liable to rejected |
Equitas Small Finance Bank Issue & Subscribed Details
| Particulars | Issued | Subscribed |
|---|---|---|
| Issue Size | ₹ 517.6 Crores | ₹ - Crores |
| QIB Portion | ~50% | TBA times |
| NII Portion (Application for lot size of 15 & above) | ~15% | TBA times |
| Retail Portion (Applications for lot size between 1 & upto 15) | ~35% | TBA times |
| Employees Portion | ~1% | TBA times |
| Existing Shareholders of Equitas Holdings Ltd. Portion | Yes | TBA |
| Total | 100% | TBA times |
Equitas Small Finance Bank Indicative Dates
| Issue Open | 20-Oct-2020 |
| Issue Close | 22-Oct-2020 |
| Anchor Investor Bidding | One working day prior to Issue opening date 19-Oct-2020 |
| Announcement of Allotment | 27-Oct-2020 |
| Initiation of Refunds | 28-Oct-2020 |
| Credit of Shares | 29-Oct-2020 |
| Listing | 2-Nov-2020 |
Lead Managers of Equitas Small Finance Bank IPO
List of Book Running and Lead/Co-Lead Manager/s
| JM Financial Limited |
| Edelweiss Financial Services Limited |
| IIFL Securities Limited |
Registrar of Equitas Small Finance Bank IPO
| KFIN Technologies Private Limited |
Valuation
Company is looking at the following valuation
| Issue Size | ₹ 517.6 Crores |
| Pre-Issue Promoter's Holding | % |
| Post Issue Promoter's Holding | % |
| Pre-Issue Shares | ₹ 10.53 Crores |
| Post Issue Shares | ₹- Crores |
| Post Issue Market Cap (based on Price band) | ₹ to ₹ Crores |
Address of Equitas Small Finance Bank IPO
| Name | Equitas Small Finance Bank Ltd. |
| Corporate Identity Number | U65191TN1993PLC025280 |
| Contact Person | Sampathkumar K. Raghunathan, Company Secretary and Compliance Officer; |
| Registered and Corporate Office | 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu, India | Tel: +91 44 4299 5000 |
| Website | www.equitasbank.com |
| secretarial@equitas.in |
Check Allotment Status of Equitas Small Finance Bank IPO
| Please check below or visit here to check allotment status of Equitas Small Finance Bank IPO |
Frequently Asked Questions (FAQ)
| Q. How to Apply for IPO ? A. IPO can be applied Online and Offline mode. Online: a) Via Net banking of Bank website b) Via Stock brokers portal Offline: a) Collect application forms from Brokers > Fill demat details & UPI > Submit to any broker across India. b) Download forms from NSE/BSE website > Fill demat details & UPI > Submit to any broker across India. |
| Q. How to register for BHIM UPI? UPI is made mandatory by SEBI to apply for IPO's. To educate investors National Payment Corporation of India (NPCI) has come out with the useful video. This video educates on how to download BHIM UPI app and its process to register. Source: NPCI |
| What is UPI based ASBA Process ? To educate people to apply for IPO's National Payment Corporation of India (NPCI) has come out with the useful video. This video educates consumers on how the IPO process works and how subscribing for IPOs via BHIM UPI helps reduce the time and effort one needs to take for the same. Source: NPCI |
| How to calculate bid Amount? For easyness, one can use below calculator to calculate amount required for bidding of applications Source: NPCI |
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