Esaf Small Finance Bank Ltd has fixed the price band for its maiden initial public offer at ₹57 to ₹60 per equity share. The IPO opens for subscription on Friday, November 3, and closes on Tuesday, November 7. Investors can bid for a minimum of 250 equity shares, and in multiples of 250 equity shares thereafter.
The public issue of face value of ₹10 per equity share comprises fresh issuance of equity shares worth Rs 390.70 crore and an Offer-for-Sale (OFS) of up to Rs 72.30 crore, aggregating to Rs 463 crore.
The bank proposes to utilise the proceeds of the fresh issue to augment its Tier-1 capital base.
The lender’s primary products are advances and deposits (current accounts, savings accounts, term deposits, and recurring deposits). Its advances comprise micro loans (comprising microfinance loans and other micro loans), retail loans (such as gold loans, mortgages, personal loans, and vehicle loans), MSME loans, loans to financial institutions, and agricultural loans.
Esaf SFB was the fifth largest SFB in India in terms of AUM. Between March 31, 2021, and 2023, the bank had the fourth-highest deposit growth among its comparable peers and the highest AUM growth. Its assets under management (AUM) grew from ₹8,425.93 crore to ₹16,331.27 crore, with a CAGR of 39 per cent.
It reported the second highest year-on-year AUM growth for the three months ended fiscal 2024 among compared SFBs. Deposits also increased from ₹8,999.43 crore to ₹14,665.63 crore during the same period, registering a CAGR of 28 per cent, the fourth highest growth among their peers.
ICICI Securities Ltd, DAM Capital Advisors Ltd, and Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) are the book-running lead managers.