The bank has raised Rs 140 crore from anchor investors by the way of allocating 4.23 crore equity shares at the price of Rs 33 per equity share, which is also the upper band of the IPO price.
Analysts are mixed on the isse, but mostly have a ‘subscribe’ rating with a long term view as the focus area of the lender, which is an underserved population of India, provides a vast opportunity for the company. In the grey market, however, the issue is trading at a tepid premium.
Here are key things to know about the issue:
- When does Equitas SFB IPO open?
Equitas SFB IPO opened for subscription on Tuesday, October 20 and will close on Thursday, October 22.
- What is the price band for Equitas SFB IPO?
The price band for Equitas SFB IPO has been fixed at Rs 32-33.
- What is the lot size for Equitas SFB IPO?
Investors can subscribe to the IPO by betting for a lot of 450 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots.
- What is the issue size of Equitas SFB IPO?
The company is selling 156,848,485 shares via the issue, which includes a fresh issue of 84,848,485 shares and an offer for sale of 72,000,000 shares.
- What is the quota reserved for retail investors in Equitas SFB IPO?
The quota for retail investors in Equitas SFB IPO is fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent while the NII at 15 per cent.
- Is there any employee quota in Equitas SFB IPO?
Yes. Up to 3,12,500 shares are reserved for employees while 1,59,37,500 shares have also been reserved for shareholders of Equitas Holdings as well.
- When will the basis of allotment be out?
The finalisation of the basis of allotment is likely by October 27, 2020 and the initialisation of refunds is likely by October 28. Meanwhile, credit of shares in the demat account is likely by October 29.
- When will Equitas SFB IPO list?
Equitas SFB listing is likely by November 2.
- Where could we check Equitas SFB IPO allotment?
Those who would bid for the issue can check the subscription status on: https://ris.kfintech.com/ipostatus/ – the online portal of KFin Technologies Private Ltd, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
- What is the asking valuation for Equitas SFB IPO?
The book value of the scrip is at Rs 26.47 as of June 2020. At the upper limit of the price band, the issue is asking for an adjusted price to book value (P/BV) of 1.26 times after considering the fresh issue. It is asking for 16.3 times price to earnings ratio at Q1FY21 profits.
- Who are the leading book managers to the issue?
JM Financial Ltd, Edelweiss Financial Services Ltd and IIFL Securities Ltd. are the leading book managers
- What does Equitas SFB stand for?
Equitas SFB is the abbreviation used for Equitas Small Finance Bank.
- What does Equitas SFB do?
As of fiscal 2019, Equitas SFB was the largest SFB in India in terms of the number of banking outlets, and the second-largest SFB in India in terms of assets under management and total deposits. It offers a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India.
- Who are listed peers of Equitas SFB?
Equitas SFB has two listed peers on BSE and NSE — AU Small Finance Bank and Ujjivan Small Finance Bank. Non-listed peers include Utkarsh SFB, ESAF SFB, Fincare SFB and Suryoday SFB.
- What is the business mix of Equitas SFB?
Nearly 42 per cent of its asset mix is small business loans including housing finance. Vehicle finance and microfinance are the next two biggest segments with AUM share of 24 per cent and 23 per cent. As of June, its AUM stood at Rs 15,572.9 crore.
- Should you invest in Equitas SFB IPO?
ICICI Securities said the company has strong advances growth along with stable asset quality. “Unserved and underserved customers as targets offer a vast opportunity for business growth. We have a ‘Subscribe’ recommendation on the stock,” said the broker. Some analysts, however, believe you should skip the issue as listing gains will be limited.