ESAF Small Finance Bank files Rs 998-crore IPO papers with SEBI

ESAF Small Finance Bank has filed preliminary papers with capital markets regulator SEBI to raise Rs 998 crores through an initial public offer (IPO).

According to the draft red herring prospectus (DHRP) filed with SEBI, the Rs 997.78-crore public issue comprises a fresh issue of equity shares worth Rs 800 crores and an offer for sale of Rs 197.78 crores by existing selling shareholders.

The bank may consider a pre-IPO placement of equity shares for an aggregate amount up to Rs 300 crores. If the pre-IPO placement is undertaken, the amount raised from such placement will be reduced from the fresh issue.

ESAF Small Finance Bank is one of the leading small finance banks in India in terms of 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 the ratio of microloan advances to gross advances. As of May 31, 2021, the small finance bank had over 4.68 million customers in 21 states and two union territories.

Source: Business Standard