Equitas SFB IPO: Equitas Small Finance Bank’s IPO of Rs 518 crore has got a good response to investors. However, even after the share price was very low, the IPO had to wait for the last hours on the last day to subscribe 100 percent. 22 October means today is the last day to invest in the IPO of Equitas. So far, the IPO has received bids for 12.95 crore equity shares, while the offer size is 11.58 crore equity shares. Experts are advising to invest in it because the stock price is attractive. If you also want to invest money, now the last hours are left.
Which part is so full
Talking about Equitas, the reserve position for Qualified Institution Investors is 1.6 times full. While the reserve position for retail investors is 1.58 times full. The bank had reserved a portion for its employees and promoters, which is 1.08 times and 27 percent full.
Third IPO in Small Finance segment
In the first small finance segment of Equitas Small Finance Bank, AU Small Finance and Ujjivan Small Finance Bank have also launched their IPOs. However, compared to peer companies, Equitas has offered an IPO at an attractive price. If you talk about both the previous IPOs, AU Small Finance Bank is trading at Rs 783 with a premium of 118% from its issue price of Rs 358. On the other hand, Ujjivan Small Finance has traded on its issue price from Rs 37 to 13 per cent with a discount of 13 per cent. Both the issues were listed at a premium of over 50 per cent.
Price band is 32-33 rupees
Equitas Small Finance Bank has targeted to raise Rs 500 crore through an IPO. The company has given this information in the regulatory filing. The company has fixed the price band of the IPO at Rs 32-33. 280 crores of new shares will be issued under this IPO. Apart from this, the allocation of 7.2 crore equity shares of the bank’s holding company Equitas Holding Limited will be done through Offer for Sale. The company will issue a total of 15.2 million shares in the IPO. In this, 8 crore fresh shares will be issued. 7.2 crore shares will be offered for sale.
Bank financial position
Chennai-based Equitas SFB was licensed in 2016 by the Reserve Bank of India. Its loan book has come down from Rs 10,781 crore to Rs 15,923 crore during FY 2017-18 to FY 2019-20. By the June quarter of the financial year 2019-20, it had reached Rs 17,213 crore. Small business loans, microfinance and vehicle loans accounted for 42 per cent, 23 per cent and 24 per cent of the total business of this small finance bank during the quarter.
Can get 100 percent return
Brokerage house MK Global has advised to invest in the IPO of Equita Small Finance Bank. He has set a target of Rs 64 for this, which is almost double the issue price. According to the brokerage, superior asset diversification is the strength of the equities. Apart from this, the liability profile is reasonable, the management is better, the return ratio is healthy and the biggest thing is the value is reasonable. The price band for the issue is 32 to 33 rupees. The share is expected to be listed at a premium even on the day of listing.
Lead manager for IPO
The company has appointed JM Financial, Edelweiss Financial Services and IIFL Securities as lead managers for the IPO of Equitas Small Finance Bank. Equitas Small Finance Bank is the largest small finance bank in the country in terms of the number of bank branches. It is the second-largest small finance bank in the country in terms of assets and bank deposits.