Fincare Small Finance Bank is planning to tap the capital market, whereby it will make a fresh issue of shares to raise up to Rs 625 crore and its promoter shareholders and investor selling shareholders (ISS) will offload up to 1.7 crore shares.
According to the offer document, the bank may undertake a pre-IPO (initial public offer) placement of such a number of securities aggregating up to ₹125 crore.
The objective of the fresh issue of shares is augmentation of the bank’s Tier–1 capital base to meet its future capital requirements.
Currently, Fincare Business Services Ltd is the biggest (promoter) shareholder in the bank, with 78.58 per cent stake. ISSs’ with more than 1 per cent shareholding are: Wagner (2.48 per cent), True North Fund V LLP (2.34 per cent), Indium IV (Mauritius) Holdings (2.27 per cent) and Omega TC Holdings Pte. Ltd (1.18 per cent)..
As at March-end 2022, the bank had deposits aggregating Rs 6,455.58 crore and advances of Rs 7,036.37 crore. It reported a net profit of Rs 8.87 crore in FY22 against Rs 113.13 crore in FY21.