The Rs 463-crore initial public offering of Kerala-based ESAF Small Finance Bank enters Day 2. The issue received a strong response on Day 1 when it was subscribed 1.74 times. The public issue comes at a price band of Rs 57-60. The issue will close on Tuesday.

The issue received bids for 10.07 crore shares, as against 5.77 crore shares on offer. The portion reserved for retail investors was subscribed 1.99 times; HNIs 2.44 times; and QIBs 0.90 times. The employee quota was subscribed 1.01 times.

The public issue comprises a fresh issue of Rs 390.7 crore worth shares and an offer-for-sale of Rs 72.3 crore shares by ESAF Financial Holding, PNB Metlife India Insurance Company and Bajaj Allianz Life Insurance Company. The offer has reserved Rs 12.5 crore worth of shares for its employees, who will get a discount of Rs 5 each on the final issue price.

Investors can bid for a minimum of 250 equity shares. The retail quota is 35 per cent, QIB 50 per cent, and the HNI quota 15 per cent.

The bank raised Rs 135.15 crore from anchor investors on Thursday. It has finalised allocation of 2,25,24,998 shares to 11 anchor investors at Rs 60 a share. The anchor investors are ACM Global Fund VCC, Founders Collective Fund, Ananta Capital Ventures Fund, Astorne Capital VCC, BNP Paribas Arbitrage, Copthall Mauritius Investment, Alchemie Ventures Fund, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, ICICI Prudential Life Insurance and SBI General Insurance.

The net fresh issue proceeds will be used to augment the bank’s Tier–I capital base to meet its future capital requirements and to increase its business, which is primarily onward lending.

The book-running lead managers to the issue are ICICI Securities, Dam Capital Advisors and Nuvama Wealth Management, while Link Intime India is the registrar.

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