ESAF Small Finance Bank Raises Rs 135 Crore from Anchor Investors Ahead of IPO Launch

3 Nov 2023 , 08:51 AM

Kerala-based ESAF Small Finance Bank secured Rs 135.15 crore from anchor investors on November 2, a precursor to its public issue launching today.

A total of 11 investors, including ACM Global Fund VCC, Founders Collective Fund, Ananta Capital Ventures Fund, Astorne Capital VCC, BNP Paribas Arbitrage, Copthall Mauritius Investment, and Alchemie Ventures Fund, took part in the anchor book, reserved for qualified institutional buyers. Notably, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, ICICI Prudential Life Insurance, and SBI General Insurance were among the notable investors in the company through the anchor book.

Kotak Mahindra Life Insurance Company and ACM Global Fund VCC emerged as the leading investors, each acquiring Rs 20.05 crore worth of shares in the small finance bank. Edelweiss Tokio Life Insurance Company purchased over Rs 20 crore worth of shares across its four schemes. ESAF disclosed that it allotted 2,25,24,998 equity shares to anchor investors at Rs 60 per equity share.

ESAF Small Finance Bank plans to raise Rs 463 crore from its forthcoming initial public offering, with the upper end of the price band set at Rs 57-60 per share.

The public issue includes a fresh issue of shares worth Rs 390.7 crore and an offer-for-sale (OFS) of Rs 72.3 crore shares by three selling shareholders – ESAF Financial Holding, PNB Metlife India Insurance Company, and Bajaj Allianz Life Insurance Company.

The IPO is scheduled to commence on November 3 and close on November 7. Additionally, ESAF has reserved shares worth Rs 12.5 crore for its employees, who will receive these shares at a discounted price of Rs 5 each, based on the final issue price.

The proceeds from the fresh issue will be directed towards strengthening the bank’s Tier – I capital base to meet future capital requirements and to expand business operations, particularly in onward lending activities, which encompass micro, retail, and corporate banking.