ESAF Small Finance Bank IPO to kick off on Nov 3

New Delhi: ESAF Small Finance Bank Ltd on Tuesday said it has fixed the price band at Rs 57-60 per share for its Rs 463-crore initial share sale that will hit the Indian stock exchanges on November 3. The Initial Public Offering (IPO) of the company will conclude on November 7, while the anchor portion will open on November 2. The firm has lowered its size of fresh issue of equity shares worth up to Rs 390.70 crore from the earlier target of Rs 486.74 crore. It has also reduced its offer for sale component from Rs 142.3 crore to Rs 72.30 crore, as per the red herring prospectus (RHP).

Those selling shares in the OFS are promoter ESAF Financial Holdings Pvt Ltd and other shareholders PNB MetLife India Insurance Company Ltd, and Bajaj Allianz Life Insurance Company Ltd. Further, investors can bid for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. At present, ESAF Financial Holdings owns a 62.46 per cent stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life own 4.75 per cent and 3.89 per cent stake, respectively, in the lender.

Proceeds of the fresh issue will be utilised to augment the bank’s Tier 1 capital base. ESAF Small Finance Bank is one of the leading small finance banks in India. ICICI Securities Ltd, DAM Capital Advisors Ltd, and Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) are the book-running lead managers for the IPO. The equity shares are proposed to be listed on BSE and NSE.