ESAF Small Finance Bank's IPO Sees Strong Demand, Subscribed 12.02 Times on Day 3 So Far

7 Nov 2023 , 10:57 AM

The ESAF Small Finance Bank’s Initial Public Offering (IPO) exhibited robust demand on the second day of bidding, November 7, witnessing a subscription of 8.3 times, as bids surged to 47.92 crore equity shares against the issue size of 5.77 crore shares. This surge was primarily supported by high net worth individuals and retail investors seeking to participate in the offering.

By 11:00 AM on the third day of bidding, the subscription reached an impressive 12.02 times, largely driven by the Non-Institutional Investors category, which attracted bids of 30.46 times, closely followed by the retail portion, subscribed 9.96 times. Additionally, the Qualified Institutional Buyers (QIB) section garnered 3.19 times bids, while the employees’ portion received 2.77 times subscription.

The IPO reserves 50% of the net issue for qualified institutional buyers, allocates 15% for high net worth individuals, and dedicates the remaining 35% for retail investors. The employees will secure shares worth Rs 12.5 crore in the offering, leaving the IPO’s net issue excluding their portion.

ESAF Small Finance Bank’s IPO aims to raise Rs 463 crore during the period from November 3 to November 7, setting the upper price band. The offer encompasses a fresh issuance of shares valued at Rs 390.70 crore by the company and an offer-for-sale (OFS) of Rs 72.30 crore worth of shares by promoter ESAF Financial Holdings, and investors PNB MetLife India Insurance Company, and Bajaj Allianz Life Insurance Company. The price band for the offer is fixed at Rs 57-60 per share.