ESAF Small Finance Bank refiles preliminary IPO papers to raise Rs 629 crore

11 Jul 2023 , 01:20 PM

ESAF Small Finance Bank has resubmitted the IPO papers to SEBI, the market regulator, aiming to raise up to Rs 629 crores from the primary market. The private sector lender has reduced the issue size from Rs 998 crores, which initially included a fresh issue of Rs 800 crores and an offer for sale of Rs 198 crores.

According to the draft red herring prospectus (DRHP), the current issue size consists of fresh equity shares totaling Rs 486.74 crores and an offer for sale (OFS) of Rs 142.3 crores. The entities selling shares in the OFS include promoter ESAF Financial Holdings Private Ltd, PNB MetLife India Insurance Company Ltd, and Bajaj Allianz Life Insurance Company Ltd.

The proceeds from the fresh issue will be utilized to strengthen the bank’s Tier 1 capital base. ESAF Small Finance Bank is recognized as one of the leading small finance banks in India based on metrics such as client base size, yield on advances, net interest margin, assets under management compound annual growth rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas, and ratio of micro loan advances to gross advances.

ICICI Securities, DAM Capital Advisors Ltd, and Nuvama Wealth Management Ltd have been appointed as merchant bankers to advise the bank on the IPO. The equity shares of the bank will be listed on both BSE and NSE.