ESAF Small Finance Bank IPO: Last Chance to Get in on the Action!

ESAF Small Finance Bank issue closes today. Today is the last day to subscribe to the ESAF Small Finance Bank public issue. The IPO of the Kerala-based bank has received a great response from investors in the first two days, with a subscription of 8.32 times. The price band for the public issue is ₹57-60.

The total number of bids received for the shares on offer is 48.03 crore, while the number of shares on offer is 5.77 crore. The retail investors’ portion has been subscribed 7.91 times, HNIs 20.18 times, and QIBs 1.04 times. Even the employees of the bank have shown interest in participating in the IPO, with their quota being subscribed 2.40 times.

The public issue consists of a fresh issue of shares worth ₹390.7 crore and an offer-for-sale of shares worth ₹72.3 crore by ESAF Financial Holding, PNB Metlife India Insurance Company, and Bajaj Allianz Life Insurance Company. The employees have also been allocated shares worth ₹12.5 crore, with a discount of ₹5 each on the final issue price.

Investors can bid for a minimum of 250 equity shares. The retail quota is 35%, QIB quota is 50%, and HNI quota is 15%.

ESAF Small Finance Bank has already raised ₹135.15 crore from anchor investors before the public issue opened. The bank has allocated 2,25,24,998 shares to 11 anchor investors at ₹60 per share. Some of the anchor investors include ACM Global Fund VCC, Founders Collective Fund, Ananta Capital Ventures Fund, Astorne Capital VCC, BNP Paribas Arbitrage, Copthall Mauritius Investment, Alchemie Ventures Fund, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, ICICI Prudential Life Insurance, and SBI General Insurance.

The net fresh issue proceeds will be used to strengthen the bank’s Tier – I capital base and support future capital requirements. It will also be utilized to expand the bank’s business, particularly in the area of lending.

The book-running lead managers for the issue are ICICI Securities, Dam Capital Advisors, and Nuvama Wealth Management, while Link Intime India is the registrar.