Equitas SFB Listing: Equitas Small Finance Bank has a sluggish entry into the stock market. Today the stock is listed on the stock market at a 6 percent discount. The issue of Equitas Small Finance Bank was Rs 33 per share, but it was listed at Rs 31.10 on the BSE, which is 6% below the issue price. Even after the issue was reduced, experts were anticipating its sluggish listing. However, this issue can be better in terms of long term investment.
After listing, Equitas Small Finance Bank is trading at Rs. 3.45, down 1.77 percent from the issue price. After opening at Rs 31.90, it weakened to Rs 30.10. At the same time, it strengthened to Rs 31.90. The IPO of Equitas Small Finance Bank opened on Tuesday 20 October and closed on 22 October. This was the 12th IPO of this year. Among the issues that were available for sale through this IPO were fresh issue of Rs 280 crore and 7,20,00,000 shares under offer for sale.
Subscribed 2 times
The Rs 520 crore IPO was subscribed 1.95 times. The price band of this IPO of Equitas Small Finance Bank was 32-33 rupees per share. The first IPO of Equitas Small Finance Bank was scheduled to come in March but it was averted due to coronavirus infection and lockdown. Along with this, the size of the issue was also halved. Earlier the issue of 1000 crore rupees was going to be released.
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 more than 50 per cent premium.
Bank financial position
Chennai-based Equitas SFB was licensed in 2016 by the Reserve Bank of India. Its loan book has come 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.