Equitas Small Finance Bank’s ₹ 517.6 crore initial public offer (IPO) opens for subscription on October 20. The IPO will remain open till October 22. The IPO comprises fresh issue of 8.5 crore shares and offer for sale of 7.2 crore shares by Equitas Holdings. Post the IPO, the stake of Equitas Holdings Limited, the holding company of Equitas Small Finance Bank, will decline to about 82 per cent. The shares are likely to be listed on the BSE and NSE on November 2, 2020.
Equitas Small Finance Bank has fixed the price band of the share sale at ₹ 32- ₹ 33 per share. Applicants can bid for a minimum one lot of 450 equity shares and in multiples of 450 equity shares thereafter, up to 13 lots.
The bank will utilize the IPO proceeds to augment its Tier I capital base to meet future capital requirements.
Equitas Small Finance Bank is a micro-finance institution incorporated in Chennai in 1993. It provides microfinance loans, housing finance and vehicle finance. But unlike other micro-finance institutions, it also provides savings accounts, mutual fund products and third-party insurance.