ESAF Small Finance Bank Makes Strong Market Debut, Lists at 19% Premium Over IPO Price

10 Nov 2023 , 09:55 AM

In a robust market debut, the shares of ESAF Small Finance Bank listed at a substantial 19% premium over the issue price of Rs 60. The stock made its entrance on the NSE at Rs 71, representing an 18.33% premium, and on the BSE at Rs 71.90, commanding an even higher premium of 19.83%.

The bank’s initial public offering (IPO) garnered significant investor interest, with subscription rates reaching an impressive 73.15 times. The overwhelming response saw bids for 422.29 crore equity shares against an issue size of 5.77 crore shares. Qualified institutional buyers (QIBs) played a pivotal role, subscribing 173.52 times the allotted quota. High-net-worth individuals (HNIs) and retail investors also displayed strong enthusiasm, subscribing at rates of 84.37 times and 16.97 times, respectively.

ESAF Small Finance Bank successfully raised Rs 463 crore through the IPO. The funds raised will be strategically utilized to bolster the bank’s Tier–I capital base, positioning it to meet future capital requirements. Additionally, the proceeds will contribute to expanding the bank’s business activities, with a focus on onward lending.

The IPO, which opened on November 3 and concluded on November 7, featured a price band of Rs 57-60 per share. The strong market debut reflects positive investor sentiment and confidence in ESAF Small Finance Bank’s growth prospects.