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ESAF Small Finance Bank IPO was fully subscribed on the first day of bidding led by retail and NII.
The issue received bids of 10,06,48,500 shares against the offered 5,77,28,408 equity shares at a price band of ₹57-60, according to the data available on the stock exchanges. Overall, the issue was subscribed 1.44 times.
The Non-Institutional Investors portion was the most subscribed, with a subscription rate of 2.44 times, followed by the Retail portion at 1.98 times. The Qualified Institutional Buyer portion has a subscription rate of 0.90 times, while the Employee portion was subscribed 1.01 times.
The issue kicked off for subscription on Friday and will close on Tuesday, November 7.
A day prior to the opening of the issue, Esaf Small Finance Bank had raised ₹135.15 crore from anchor investors. foreign and domestic institutions that participated in the anchor were ACM Global Fund VCC, Kotak Mahindra Life Insurance Company Limited, Edelweiss Tokio Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, SBI General Insurance Company Limited, Founder Collective Fund, Ananta Capital Ventures Fund 1, Astorne Capital VCC – Arven, BNP Paribas Arbitrage, Copthall Mauritius Investment Limited, Alchemie Ventures Fund – Scheme 1.
Leading brokerages like LKP Securities, Sushil Finance, Hem Securities, Swastika Investmart, StoxBox, BP Equities, and Religare Broking have given a “Subscribe” rating to the issue, highlighting the bank’s attractive valuation, strong return ratios, and its potential to tap into the rural segment’s untapped credit opportunities.
While some concerns, such as geographic concentration and intense competition, exist, the overall sentiment is favourable. The IPO is generally seen as worth considering, with recommendations to subscribe, especially for medium- to long-term investors.
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