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Equitas Small Finance Bank IPO is a book built issue of Rs 517.60 crores. The issue comprises of fresh issue of Rs 280.00 crore and offer for sale of 7.2 crore shares.
Equitas Small Finance Bank IPO bidding started from October 20, 2020 and ended on October 22, 2020. The allotment for Equitas Small Finance Bank IPO was finalized on Tuesday, October 27, 2020. The shares got listed on BSE, NSE on November 2, 2020.
Equitas Small Finance Bank IPO price band is set at ₹32 to ₹33 per share. The minimum lot size for an application is 450 Shares. The minimum amount of investment required by retail investors is ₹14,850.
The issue includes a reservation of up to 312,500 shares for employees offered at a discount of Rs 0 to the issue price.
Edelweiss Financial Services Ltd, Iifl Securities Ltd and Jm Financial Limited are the book running lead managers of the Equitas Small Finance Bank IPO, while Kfin Technologies Limited is the registrar for the issue.
Refer to Equitas Small Finance Bank IPO RHP for detailed information.
| IPO Date | October 20, 2020 to October 22, 2020 |
| Listing Date | November 2, 2020 |
| Face Value | ₹10 per share |
| Price Band | ₹32 to ₹33 per share |
| Lot Size | 450 Shares |
| Total Issue Size | [.] shares (aggregating up to ₹517.60 Cr) |
| Fresh Issue | [.] shares (aggregating up to ₹280.00 Cr) |
| Offer for Sale | 72,000,000 shares of ₹10 (aggregating up to ₹237.60 Cr) |
| Retail Discount | Rs 0 per share |
| Employee Discount | Rs 0 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 1,053,401,602 |
| Share holding post issue | 1,138,250,086 |
Equitas Small Finance Bank IPO offers 115,850,001 shares. 27,975,001 (24.15%) to QIB, 21,487,500 (18.55%) to NII, 50,137,500 (43.28%) to RII, 312,500 (0.27%) to employees. 111,416 RIIs will receive minimum 450 shares and (sNII) and (bNII) will receive minimum 6,300 shares. (in case of oversubscription)
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | - | NA |
| QIB Shares Offered | 27,975,001 (24.15%) | NA |
| NII (HNI) Shares Offered | 21,487,500 (18.55%) | |
| Retail Shares Offered | 50,137,500 (43.28%) | 111,416 |
| Employee Shares Offered | 312,500 (0.27%) | NA | Other Shares Offered | 15,937,500 (13.76%) | NA |
| Total Shares Offered | 115,850,001 (100%) |
Equitas Small Finance Bank IPO opens on October 20, 2020, and closes on October 22, 2020.
| IPO Open Date | Tuesday, October 20, 2020 |
| IPO Close Date | Thursday, October 22, 2020 |
| Basis of Allotment | Tuesday, October 27, 2020 |
| Initiation of Refunds | Wednesday, October 28, 2020 |
| Credit of Shares to Demat | Thursday, October 29, 2020 |
| Listing Date | Monday, November 2, 2020 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 22, 2020 |
Investors can bid for a minimum of 450 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 450 | ₹14,850 |
| Retail (Max) | 13 | 5850 | ₹193,050 |
| Lot Size Calculator | |||
Incorporated in 1993, Chennai based Equitas Small Finance Bank Ltd (ESFBL) was the largest small finance bank in India in Fiscal 2019 considering banking outlets and the 2nd largest small finance bank considering assets under management and total deposits. Unlike other microfinance companies, it has a diversified loan portfolio and less dependence on microfinance business. With the main focus on financially unserved and underserved customers, the bank offers a wide range of banking products and services.
The company provides microfinance loans promoting financial inclusion, housing finance, vehicle finance, and MSE finance. Equitas Small Fin Bank offers financial products according to customers' income profile, type of security available and nature of business.
Apart from this, the bank also provides current accounts, salary accounts, savings accounts, other deposit accounts, ATM-cum-debit cards, mutual fund products, third party insurance, and issuance of FASTags.
ESFBL follows credit assessment procedures through a risk management framework which is analyzed by its Risk Management Committee. As on 30th Sep 2019, it has the largest distribution channel among Small Finance Banks (SFBs) including 853 Banking Outlets and 322 ATMs in India across 15 states and union territories.
Competitive Strengths
1. A customer-centric organization with a focus on unserved and underserved segment
2. A well-diversified asset portfolio as SFB
3. Strong retail liability portfolio
4. Credit assessment procedures
| Particulars | For the year/period ended (Rs in Million) | ||||
|---|---|---|---|---|---|
| 30-Jun-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 208,921.39 | 193,145.47 | 157,626.91 | 133,011.50 | |
| Total Revenue | 7,509.68 | 29,277.95 | 23,948.32 | 17,729.03 | |
| Profit After Tax | 576.71 | 2,436.35 | 2,105.66 | 318.31 | |
The bank proposes to utilize the Net Proceeds from the fresh issue offer towards augmenting the Bank's Tier I capital base to meet the future capital requirement.
[Dilip Davda] The company that was primarily the micro finance company is now turning small finance bank with diverse financial services. Based on Q1 FY21 earnings, the issue appears aggressively priced. Sustainability of such performance is doubtful with ongoing agitations by weaker sections for waiver of interest and PIL filed in Supreme Court in this regard (hearing is scheduled for first week of November 2020). Thus in near term, banking industry in general and SFBs/MFIs in particular are likely to face some setbacks. Considering these, investors may consider investment for long term. Read detail review...
The Equitas Small Finance Bank IPO is subscribed 1.95 times on October 22, 2020 5:00:01 PM. The public issue subscribed 2.08 times in the retail category, 3.91 times in the QIB category, and 0.22 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) |
|---|---|
| QIB | 3.91 |
| NII | 0.22 |
| Retail | 2.08 |
| Employee | 1.84 |
| Others | 0.42 |
| Total | 1.95 |
Investors who hold EHL shares on October 11, 2020, are eligible to apply under the shareholder's category of Equitas Small Finance Bank IPO. The company reserved 10% of the offer for Shareholders (approximate Rs 51 Cr). The EHL shareholders can apply up to Rs 2 lakh in the Shareholders category. EHL shareholders can also apply under the retail category. Further, if an EHL shareholder is also an employee, he/she is also eligible to apply in all the three categories- RII (up to Rs 2 lakhs), Shareholder (up to Rs 2 lakhs) and Employees (up to Rs 5 lakhs).
Full-time or permanent employees of EHL can apply in the SBI Employees category of Equitas Small Finance Bank IPO. The maximum limit defined to apply in the Employee category is Rs 5 lakhs. The maximum allotment to employees cannot be above Rs 2 lakhs when the category is fully or oversubscribed. In case of under-subscription in the employee category, the unsubscribed portion will be available for allocation, proportionately to all Eligible Employees who Bid above Rs 2 lakhs, subject to a maximum limit not exceeding Rs 5 lakhs.
| Category | Percentage of Offer size | Basis of Allotment |
|---|---|---|
| QIB | Not More than 50% | Proportionate |
| NII | Not less than 15% | Proportionate |
| Retail | Not less than 35% | Minimum 1 lot to each investor, subject to availability. |
| Employee | Not More than 5% of the post-offer paid-up equity share capital | Proportionate* |
| Shareholders | Not More than 10% | Proportionate** |
Date: September 25, 2020
Pursuant to relaxation permitted by SEBI, the company had filed an addendum to its DRHP revising its Offer Size for the proposed IPO of its equity shares as below:
| Listing Date | November 2, 2020 |
| BSE Script Code | 543243 |
| NSE Symbol | EQUITASBNK |
| ISIN | INE063P01018 |
| Final Issue Price | ₹33 per share |
| Price Details |
|---|
| Final Issue Price |
| Open |
| Low |
| High |
| Last Trade |
| BSE |
|---|
| ₹33.00 |
| ₹31.00 |
| ₹30.10 |
| ₹33.05 |
| ₹32.75 |
| NSE |
|---|
| ₹33.00 |
| ₹31.10 |
| ₹30.05 |
| ₹33.15 |
| ₹32.80 |
Equitas Small Finance Bank Ltd
4th Floor, Phase II, Spencer Plaza, No. 769,
Mount Road, Anna Salai, Chennai 600 002,
Tamil Nadu, India
Phone: +91 44 4299 5000
Email: secretarial@equitas.in
Website: https://www.equitasbank.com/
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: einward.ris@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
If you are a Zerodha customer, you could apply for Equitas Small Finance Bank IPO using Zerodha Console (back-office) website.
Steps to apply in Equitas Small Finance Bank IPO through Zerodha
Minimum 1 share of Equitas Holdings Limited (EHL) should be in your demat account on October 11, 2020, to be eligible for applying in shareholders category of Equitas Small Finance Bank IPO. October 11, 2020, is the cut-off date for eligibility. The IPO application should be in the name of the primary demat account holder.
Eligible Employees can bid under all 3 categories of Equitas Small Finance Bank IPO:
An EHL shareholder and employee of EHL can apply in all three categories. A separate IPO application should be used for each of these categories.
* Retail application is considered as RII or NII category based on the amount in the application. Amount < Rs 2L is considered as RII and above Rs 2L is NII.
A retail individual can also apply in the Shareholders category (upto Rs 200,000) if he holds the Equitas Holdings Limited (EHL) shares in his demat account on October 11, 2020, the day of filing the RHP with SEBI.
EHL shareholders can apply in both; RII or NII as well as shareholder category with the maximum limit of Rs 200,000 in the shareholder's category.
Please note an eligible EHL shareholder bidding in the EHL shareholder reservation portion may also bid under net offer i.e. either in Retail Individual Bidders Portion for up to Rs 200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds Rs 200,000 but not exceeding the size of the Net Offer (excluding QIB portion), subject to applicable limits.
An EHL Shareholders bidding in the EHL Shareholders Reservation Portion above Rs 200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.
Equitas Small Finance Bank IPO is a main-board IPO of [.] equity shares of the face value of ₹10 aggregating up to ₹517.60 Crores. The issue is priced at ₹32 to ₹33 per share. The minimum order quantity is 450 Shares.
The IPO opens on October 20, 2020, and closes on October 22, 2020.
Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
The Equitas Small Finance Bank IPO opens on October 20, 2020 and closes on October 22, 2020.
Equitas Small Finance Bank IPO lot size is 450 Shares, and the minimum amount required is ₹14,850.
You can apply in Equitas Small Finance Bank IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.
The finalization of Basis of Allotment for Equitas Small Finance Bank IPO will be done on Tuesday, October 27, 2020, and the allotted shares will be credited to your demat account by Thursday, October 29, 2020. Check the Equitas Small Finance Bank IPO allotment status.
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