Today is the last day to subscribe ESAF Small Finance Bank public issue. The ₹463-crore initial public offering of Kerala-based ESAF Small Finance Bank saw a strong response from investors in the first two days, as it was subscribed 8.32 times. The public issue comes at a price band of ₹57-60. 

The issue received bids for 48.03 crore shares as against 5.77 crore shares on offer. The portion reserved for retail investors was subscribed 7.91 times; HNIs 20.18 times; and QIBs 1.04 times, Employees were also keen to participate in the IPO, as their quota was subscribed 2.40 times.

The public issue comprises a fresh issue of ₹390.7 crore worth shares and an offer-for-sale of ₹72.3 crore shares by ESAF Financial Holding, PNB Metlife India Insurance Company and Bajaj Allianz Life Insurance Company. The offer has also reserved ₹12.5 crore worth of shares for its employees. They will get a discount of ₹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 is 50 per cent, and HNI is 15 per cent.

ESAF Small Finance Bank has raised ₹135.15 crore from anchor investors on Thursday, ahead of its public issue opening. It has finalised allocation of 2,25,24,998 shares to 11 anchor investors at ₹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 utilised for augmenting the bank’s Tier – I capital base to meet the future capital requirements and for increasing 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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