Equitas Small Finance Bank IPO – Price, GMP, Analysis & Review
Equitas small finance bank is coming up with IPO that would open in the next few days. Chennai based Equitas small finance bank is one of the largest small finance banks in India considering banking outlets and 2nd largest considering AUM and deposits.
About Equitas Small Finance Bank Limited
They are the largest Small finance bank in India in terms of number of banking outlets, and the 2nd largest small finance bank in India in terms of AUM and total deposits in Fiscal 2019. They have been able to successfully diversify its loan portfolio and significantly reduce its dependence on its microfinance business as compared to other microfinance companies that have converted to SFBs.
This bank offers a range of banking products and services to customers with a focus on serving the financial unserved and underserved customer segments in India.
Equitas Small Finance Bank IPO Issue details
| IPO Opens | |
| IPO Closes | |
| Face Value of share | Rs 10 per equity share |
| IPO Price | Rs 552 to Rs 554 per share |
| Total Issue Size of IPO | |
| Fresh Issue of IPO | Rs 280 Crores |
| Offer for Sale of IPO | |
| IPO Lot Size | |
| Book Running Lead Managers | JM Financials Edelweiss Capital IIFL Securities |
| Listing | BSE and NSE |
Promoters of Equitas Small Finance Bank Limited
Equitas Holdings Limited are the promoter of this small finance bank.
Equity Small Finance Bank IPO – Objects of the Issue
1) Offer for sale (OFS) – The Promoter Selling Shareholder shall be entitled to the proceeds from the Offer for Sale. The bank will not receive any proceeds from the Offer for Sale
2) Fresh issue – The objects of the offer is to augment Bank’s Tier – 1 capital base to meet Bank’s future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base.
Equity Small Finance Bank Ltd – Competitive strengths
Bank poses these competitive strengths.
Customer centric organization with a deep understanding of the unserved and underserved customer segments
Among the largest SFBs in India with a well-diversified asset portfolio
Strong retail liability portfolio with a strategic distribution network
Customized credit assessment procedures for effective credit risk management.
Technology as an enabler to drive operating procedures.
Professional management, experienced leadership and trained employee base.
Equitas Small Finance Bank – Financials
Here is the summary of financial information (restated).
| Amount in Rupees Millions | ||||
|---|---|---|---|---|
| Particulars | 6 months ended Sep-19 | FY 2019 | FY 2018 | FY 2017 |
| Revenues | 13,659.4 | 23,948.3 | 17,729.0 | 12,127.0 |
| Profit (after tax) | 1,065.4 | 2,105.7 | 318.3 | 1,041.3 |
Equitas Small Finance Bank IPO Prospectus
- Equitas Small Finance Bank IPO DRHP
- Equitas Small Finance Bank IPO RHP
Equitas Small Finance Bank IPO Analysis and Reviews
- None as of now
Equitas Small Finance Bank IPO Lead Managers
- Edelweiss Financial Services Ltd
- IIFL Holdings Limited
- JM Financial Consultants Private Limited
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