Thrissur based Small Finance Bank Company ESAF Small Finance Bank files DRHP with SEBI for the proposed IPO; Key Details here

ESAF Small Finance Bank is into Financial Services Small Finance Bank and is looking raise funds through Fresh Issue and Offer For Sale

ESAF Small Finance BankIPO: Fresh Issue of Equity shares aggregating up to Rs.486.74 crores. Offer for Sale of Equity shares aggregating up to Rs.142.3 crores IPO

ESAF Small Finance Bank IPO: ESAF Small Finance Bank Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 486.74 crores and an Offer for Sale Equity shares aggregating up to Rs142.3 crores.. ICICI Securities, DAM Capital Advisors, Nuvama Wealth Management have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime (India) Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 487 Crs andby ESAF Financial Holdings Private Limited, PNB MetLife India Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited who hold Equity Shares aggregating up to ₹1,192.60million, , Equity Shares aggregating up to ₹126.70million and Equity Shares aggregating up to ₹103.70million respectively...

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Objects of the issue:
Augmentation of the Bank’s Tier - I capital base to meet the Bank’s future capital requirement..

Promoters of ESAF Small Finance Bank are Kadambelil Paul Thomas and ESAF Financial Holdings Pvt Ltd and holds 74.43% stake in the company.

About Company:
Estblished in 2016, ESAF Small Finance Bank is a small finance bank (“SFB”) registered with RBI. Its main focus on unbanked and under-banked customer segments, especially in rural and semi-urban areas. As on 31st March 2023, ESAF Small Finance Bank has 700 banking outlets spread across 21 states and 2 Union Territories.

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About Industry:
SFBs aim to service the underserved through savings instruments, and supplying credit to small business units, small and marginal farmers, micro and small industries, and other unorganized sector/lending through informal channels. There were 12 SFBs as at Mach 31, 2023. SFBs cumulatively accounted for approximately 13% of the total AUM of the industry as of March 31, 2023. SFBs’ AUM clocked 29% CAGR from March 31, 2018 to March 31, 2023. CRISIL MI&A expects SFBs’ AUM to increase by a CAGR of 22-24% between March 31, 2023 and March 31, 2025.

Source: SEBI, BSE, NSE, DRHP, ESAF Small Finance Bank, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.