Don’t Miss ESAF Small Finance Bank’s IPO at Just Rs 57-60!

Kerala-headquartered ESAF Small Finance Bank has announced the price band for its upcoming initial public offering (IPO), setting it at Rs 57-60 per share. The IPO is scheduled to open on November 3, marking a significant milestone in the bank’s journey towards going public.

The anchor book of the public issue will open for a day on November 2, with the offering for the general public set to conclude on November 7. The bank aims to raise Rs 463 crore from the maiden public issue at the upper end of the price band.

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Also See: ESAF Small Finance Ban IPO GMP

The IPO comprises a fresh issuance of shares worth Rs 390.7 crore and an offer-for-sale (OFS) of Rs 72.3 crore by the selling shareholders. In the OFS, promoter ESAF Financial Holding will sell shares worth Rs 49.26 crore, while investors PNB Metlife India Insurance Company and Bajaj Allianz Life Insurance Company will sell shares worth Rs 12.67 crore and Rs 10.37 crore, respectively.

To encourage employee participation, the bank has allocated Rs 12.5 crore worth of shares at a discounted price of Rs 5 each on the final issue price. Excluding the employee reservation, the offer is open to the public. Half of the net issue has been reserved for qualified institutional buyers, while high net-worth individuals (non-institutional investors) have been allocated 15 percent. Retail investors are given 35 percent of the net issue.

Investors can bid for a minimum of 250 equity shares and in multiples of 250 shares thereafter. Retail investors can invest a minimum of Rs 15,000 (equivalent to 250 shares) and a maximum of Rs 1,95,000 (3,250 shares), as the regulations prohibit them from investing more than Rs 2 lakh in the IPO.

ESAF Small Finance Bank, which offers micro, retail, and corporate banking services, is poised to become the sixth lender available for trading on stock exchanges after its listing. Currently, Equitas Small Finance Bank, AU Small Finance Bank, Ujjivan Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank are the listed entities in this sector.

The basis of allotment for IPO shares is expected to be finalized by November 10, and successful investors can anticipate the equity shares to be credited to their demat accounts by November 15. The bank is set to be available for trading on the stock exchanges starting from November 16, according to the IPO schedule.

ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management serve as the book running lead managers for this IPO, overseeing the offering’s smooth execution and ensuring investor participation.

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