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Kerala-based ESAF Small Finance Bank on Monday filed draft red herring prospectus with SEBI for ₹976-crore IPO. According to the DRHP, the IPO comprises a fresh issue worth ₹800 crore and an offer-for-sale aggregating up to ₹176.2 crore. The bank, in consultation with its book running lead managers (BRLMs) may consider a pre-IPO placement of up to ₹300 crore. If it is undertaken, the amount raised will be reduced from the fresh issue, the DRHP said. The BRLMs to the offer are Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities. The net proceeds from the fresh issue will be used to augment the bank’s Tier 1 capital (primarily loans/advances and investment portfolio) to meet future capital requirements.
PTI adds
The Kerala-based bank currently operates in 16 states and 1 union territory through 403 branches and 38 ultra-small branches, serving over 3.73 million customers.
The bank’s net profit increased from Rs 24.06 crore in September 2018 to Rs 92.44 crore in September 2019 and the interest earned increased from Rs 472.25 crore in September 2018 to Rs 660.68 crore in September 2019.
The bank will continue to focus on its rural and semi-urban franchisees and increase deposits across non-resident Indians, among others, according to the draft papers.
In 2017, AU Small Finance Bank launched its over Rs 1,900-crore initial share-sale.
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