Equitas SFB IPO: Initial public offering means that IPO has been in the stock market since September. Bumper listings in the stock market of IPOs like Happiest Minds, Root Mobile and Mazagaon Dock have also benefited investors heavily from listing gains. In these, investors got more than double the returns. In this sequence, now you are going to get another good earning option. This week on Tuesday, October 20, another IPO is about to enter the market. On October 20, the IPO of Equitas Small Finance Bank will open to retail investors.
32-33 rupees price band
Equitas Small Finance Bank has targeted to raise Rs 280 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.
Share price may double
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 best thing is the valuation is reasonable. The price band for the issue is 32 to 33 rupees. The shares are also expected to be listed at a premium on a listing day.
A chance to invest money by 22 October
This IPO will open from October 20, while there will be an opportunity to invest money in it till October 22. Shares worth Rs 1 crore will be reserved for bank employees and shares of Rs 51 crore for shareholders of Equitas Holdings. After this offer, Equitas Holdings’ stake in the bank will come down from the current level of 95.49 to 82-83 per cent.
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 a number of bank branches. It is the second-largest small finance bank in the country in terms of assets and bank deposits.