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ESAF Small Finance Bank has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The initial public offering comprises fresh issue of ₹8 billion worth of ESAF Small Finance Bank shares, and an offer for sale of ₹2 billion worth of shares by its promoters. The offer includes a reservation for subscription by eligible employees, of up to 5 per cent of the company’s post-offer paid-up equity share capital.
Also read: ESAF Small Finance Bank’s operating profit up by 28% in FY21
The company may also consider issuing equity shares on a private placement basis for cash consideration, aggregating up to ₹3 billion as the pre-IPO placement, according to the draft prospectus.
In April, ESAF Small Finance Bank raised ₹1.62 billion through preferential allotment of 21.8 million equity shares at ₹75, leading to a dilution of around 5 per cent stake.
As on March 31, the bank’s total deposits grew 28.04 per cent year-on-year to ₹90 billion, and advances rose 23.61 per cent to ₹84.13 billion. The current savings account ratio stood at 19.42 per cent compared with 13.66 per cent a year ago.
Also read: ESAF Small Finance Bank raises ₹162 crore through preferential allotment
Axis Capital Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are book-running lead managers to the issue.
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