ESAF Small Finance Bank IPO: The initial public offering of ESAF Small Finance Bank, which opened for public subscription on Friday, has been subscribed 84 per cent till 14:06 pm on the first day of bidding. The price band of the Rs 463-crore IPO has been fixed at Rs 57-60 per share.
The category for non-institutional investors was subscribed 1.04 times, while the retail individual investors (RIIs) portion received 1.25 times subscription. The quota for qualified institutional buyers (QIBs) got very small participation, getting bids for just 10,500 shares as against 1,58,07,017 shares on offer.
Ahead of the IPO, ESAF Small Finance Bank on Thursday collected Rs 135 crore from anchor investors.
The ESAF Small Finance Bank IPO will conclude on November 7. The IPO allotment will take place on November 10, while the company is likely to list on the BSE and NSE on November 16.
ESAF Small Finance Bank IPO GMP Today
According to market observers, unlisted shares of ESAF Small Finance Bank remain Rs 20 higher in the grey market as compared to its issue price. The Rs 20 grey market premium or GMP is about 33.33 per cent higher than its upper issue price of Rs 60 per share. This means the grey market is expecting a 33.33 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About ESAF Small Finance Bank IPO
The Rs 463-crore Initial Public Offering (IPO) comprises a fresh equity issue of Rs 391 crore and an Offer For Sale (OFS) of Rs 72 crore. Those selling shares in the OFS are promoter– ESAF Financial Holdings Private Ltd and other shareholders– PNB MetLife India Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd.
Investors can bid for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. Currently, 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.
The 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.
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